1.Anewkindofmassage,calledMuscleDigging,isinvented.BelowisatableshowingthesupplyanddemandconditionsforworkerswhoperformMuscleDigging.Whatistheoriginalequilibriumannualsalaryandquantityinthismarket?Afront-pagearticleinabig-citynewspaperreportsthatMuscleDigginghelpsyoutoloseweightandbuildmuscle,sothequantitydemandedrisesby600ateveryprice.Calculatethenewequilibriumpriceandquantity.ThereareseveralnewschoolsthathaveopenedtoteachtheMuscleDiggingtechnique,sothedemandremainsatitsnew,higherlevel,butthequantityofworkerssuppliedateverypricerisesby300.Calculatethenewequilibrium.Sketchtheoriginalsupplyanddemand,alongwiththenewsupplyanddemand,andlabeltheequilibriumpoints.

Salary Quantity Demanded Quantity Supplied

$28,000 800 200

$30,000 600 300

$32,000 400 400

$34,000 300 600

$36,000 200 800

$38,000 100 1100