2. For lunch, Maria eats only salads or vegetarian burgers. Her weekly food budget is $36. Each salad costs $6 and each vegetarian burger costs $3. When deciding how much of each good to buy, Maria is choosing between the following combinations:

i. 6 salads, 1 vegetarian burger

ii. 4 salads, 6 vegetarian burgers

iii. 3 salads, 6 vegetarian burgers

iv. 2 salads, 8 vegetarian burgers

a. Find Maria's affordable combinations of salads and burgers.

b. When deciding how much of each good to buy, Maria multiplies the number of salads by the number of burgers, which measures her utility. For example, 2saladsand 4 burgers will give her a utility of 8. Which one of the affordable combinations will maximize Maria's utility?

3. The table below shows the quantity demanded and supplied in the labor market for driving city buses in the town of Unionville, where all the bus drivers belong to a union.

Wage Per Hour

Quantity Of Workers Demanded

Quantity of Workers Supplied

$2

3,000

1,000

$3

2,500

1,500

$4

2,000

2,000

$5

1,500

2,500

$6

1,000

3,000

$7

500

3,500

a.What would the equilibrium wage and quantity be in this market if no union existed?

b. Assume that the union has enough negotiating power to raise the wage to $2 per hour higher than it would otherwise be. Is there now excess demand or excess supply of labor?