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10. Should all professors be paid the same? The following graphs show the supply of and demand for assistant professors in history (left) and in

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10. Should all professors be paid the same? The following graphs show the supply of and demand for assistant professors in history (left) and in biology (right) for a hypothetical university. Use the graphs to help you answer the following questions. Market for Assistant History Market for Assistant Biology Professors Professors (? ) ? 120 Demand ONNbaBN28 8 a 8 8 N 8 8 8 SALARY (Thousands of dollars) SALARY (Thousands of dollars) Supply 0 5 10 15 20 25 30 35 40 45 36 QUANTITY (Assistant history professors) QUANTITY (Assistant biology professors) The equilibrium wage of an assistant professor in history is $ , and the equilibrium quantity is assistant professors in history. On the other hand, the equilibrium wage of an assistant professor in biology is $ , and the equilibrium quantity is assistant professors in biology. Suppose the university sets the same wage for all assistant professors across all departments. Fill in the following table with the quantity demanded and supplied for each type of assistant professor when the university sets the wage at $72,000 and $108,000, respectively. University Wage Assistant History Professors Assistant Biology Professors (Dollars) Quantity Quantity Shortage or Quantity Quantity Shortage or Demanded Supplied Surplus Demanded Supplied Surplus 72,000 108,000 In summary, if the university sets a wage of $72,000 for all assistant professors in every department, which is equivalent to a price ceiling for biology professors, there will be assistant biology professors hired by the university than there would be if the university paid assistant biology professors their equilibrium wage. Similarly, if the university sets a wage of $108,000 for all assistant professors in every department, which is equivalent to a price floor for history professors, there will be assistant history professors hired by the university than there would be if the university paid assistant history professors their equilibrium wage

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