Question

The following table lists the name, gender, height, and minimum wage 10 people are willing to accept to work as sales clerks at a high-end clothing store.

Name	Gender	Height	Minimum Wage
		(Inches)	(Dollars per week)
Gilberto	M	69	$307
Neha	F	64	$327
Teresa	F	66	$344
Lorenzo	M	72	$360
Sam	M	70	$381
Beth	F	64	$407
Andrew	M	72	$427
Jacques	M	69	$442
Darnell	M	66	$467
Eleanor	F	70	$483

The lowest wage that the clothing store can pay to hire five sales clerks is

per week.

Suppose the head of the clothing store has a preference for tall employees because he thinks it will increase revenue, and thus, he imposes the restriction that all sales clerks hired must be at least 68 inches in height. Under this new regulation, the wage rate the clothing store must pay to attract five sales clerks rises by

per week.

Answer 1

(1) The lowest wage that the clothing store can pay to hire five sales clerks is $381.

(At this wage rate, 5 people will be willing to work: Gilberto, Neha, Teresa, Lorenzo, Sam).

(2) Under this new regulation, the wage rate the clothing store must pay to attract five sales clerks rises by $61.

The lowest wage that the clothing store can pay to hire five sales clerks, with height constraint, is $442.

(At this wage rate, 5 people will be willing to work: Gilberto, Lorenzo, Sam, Andrew, Jacques).

Increase in wage = $442 - $381 = $61