Question

5. Should all professors be paid the same? The graphs here show the supply of and demand for assistant professors in musie (left) and in accounting (right) for a hypothetical unlversity. Use the graphs to help you answer the following questions WAGE (Thousands of dollars 150 WAGE (Thousands of dollars 100 Supply Supply 120 60 90 40 60 Demand Demand 20 30 12 24 36 48 60 QUANTITY ssistant music professors) 16 24 32 40 QUANTITY LAssistant accounting professors) The equilibrium wage of an assistant professor in music is $60,000and the equilibrium quantity is 24 assistant professors in music. On the other hand, the equilibrium wage of an assistant professor in accounting is $90,000 and the equilibrium quantity is 16 assistant professors in accounting Suppose the university sets the same wage for all assistant professors in each department. Fill in the following table with the quantity demanded and supplied for each type of assistant professor when the university sets the wage to 60,000 and $90,000, respectively. Assistant Music Professors Assistant Accounting Professors University Quantity Quantity Shortage or Quantity Quantity Shortage or Wage Demanded Supplied Surplus Demanded Supplied Surplus 24▼ [Surplus m $90,000 (6 16 ▼ Neither In summary, if the university sets a wage of $60,000 for all assistant professors in every department, which is equivalent to a price ceiling for accounting professors, there will be 8tewer assistant accounting professors hired by the university than there would be if the university pald assistant accounting professors their equilibriurm