6 At Wanda’s fish shop, packers’ wages increase to €10 an hour, but the price of fish remains at 50 cents a kilogram.

a What happens to the value of marginal product of labour?

b What happens to Wanda’s demand for labour curve?

c How many students does Wanda employ?

Wanda owns a fish shop in Barcelona. She employs students to sort and pack the fish. Students can pack the following amounts of fish in an hour:

The fi sh market is competitive. The market price of fi sh is 50 cents a kilogram and the wage rate of packers is €7.50 an hour

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Number of students 1 23 Quantity of fish (kilograms) 20 50 90 4 120 569 145 165 180 8 190