Question: Jimi owns a music school that specializes in teaching guitar. Jimi has a limited supply of rooms for his instructors to use for lessons. As a result, each successive instructor adds less to Jimi's output of lessons. The following table lists Jimi's production function. Guitar lessons cost $25 per hour.
a. Construct Jimi's labor demand schedule at each of the following daily wage rates for instructors: $75, $100, $125, $150, $175, $200.
b. Suppose that the market price of guitar lessons increases to $35 per hour. What does Jimi's new labor demand schedule look like at the daily wage rates listed in part (a)?