
Concept explainers
An important application of systems of equations arises in connection with supply and demand. As the price of a product increases, the demand for that product decreases. However, at higher prices, suppliers are willing to produce greater quantities of the product. The price at which supply and demand are equal is called the equilibrium price. The quantity supplied and demanded at that price is called the equilibrium quantity. Exercises 61-62 involve supply and demand.
The following models describe wages for low-skilled labor.
a. Solve the system and find the equilibrium number of workers, in millions, and the equilibrium hourly wage.
b. Use your answer from part (a) to complete this statement:
If workers are paid ____ per hour, there will be ____ million available workers and ____ million workers will be hired.
c. In 2007, the federal minimum wage was set at $5.15 per hour. Substitute 5.15 for p in the demand model,
d. At a minimum wage of $5.15 per hour, use the supply model,
e. At a minimum wage of $5.15 per hour, use your answers from parts (c) and (d) to determine how many more people are looking for work than employers are willing to hire.

Want to see the full answer?
Check out a sample textbook solution
Chapter 7 Solutions
Thinking Mathematically plus NEW MyLab Math with Pearson eText -- Access Card Package (6th Edition)
- Use a calculator to find a decimal approximation for the following trigonometric function. cot 226°54' cot 226°54' (Simplify your answer. Type an integer or a decimal. Round to eight decimal places as needed.)arrow_forwardIn preparing for the upcoming holiday season, Fresh Toy Company (FTC) designed a new doll called The Dougie that teaches children how to dance. The fixed cost to produce the doll is $100,000. The variable cost, which includes material, labor, and shipping costs, is $31 per doll. During the holiday selling season, FTC will sell the dolls for $39 each. If FTC overproduces the dolls, the excess dolls will be sold in January through a distributor who has agreed to pay FTC $10 per doll. Demand for new toys during the holiday selling season is extremely uncertain. Forecasts are for expected sales of 60,000 dolls with a standard deviation of 15,000. The normal probability distribution is assumed to be a good description of the demand. FTC has tentatively decided to produce 60,000 units (the same as average demand), but it wants to conduct an analysis regarding this production quantity before finalizing the decision. (a) Determine the equation for computing FTC's profit for given values of the…arrow_forwardFor all integers a and b, (a + b)^4 ≡ a^4 + b^4 (mod 4).arrow_forward
- Find a plane containing the point (3, -3, 1) and the line of intersection of the planes 2x + 3y - 3z = 14 and -3x - y + z = −21. The equation of the plane is:arrow_forwardDetermine whether the lines L₁ : F(t) = (−2, 3, −1)t + (0,2,-3) and L2 : ƒ(s) = (2, −3, 1)s + (−10, 17, -8) intersect. If they do, find the point of intersection. ● They intersect at the point They are skew lines They are parallel or equalarrow_forwardAnswer number 15arrow_forward
- Linear Algebra: A Modern IntroductionAlgebraISBN:9781285463247Author:David PoolePublisher:Cengage LearningAlgebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:Cengage

