Part 2: Macroeconomics (40 pts)

(14 points) Forthe handmade hat market, Company ABC's daily demand of labor is represented by the equation: P = -0.3cQ + 75 and the daily supply of labor is represented by the equation P = 4Q + 15. Furthermore:

• P is the price (real wage rate) of labor,

• Q is the quantity of employment expressed in number of workers,

• c is a value equal to the sum of the letters in your first and last name plus three (for Alexandria Roethlisberger, c = 27),

• Hats sell for a price equal toc ($16.20 for Alexandria),
• To be clear, the slope of the demand curve is -0.3c (-8.1 for Alexandria), and
• The labor market is in equilibrium.

My name is Aaliyah McLean

1. (2 pts) Calculate the equilibrium price (wage rate) and quantity of workers, rounding all answers to two decimals. Circle your answers.
2. Equilibrium price (wage rate) is approximately $42.28.
3. Equilibrium quantity of workers is approximately 6.82.
4. Price of hats is $9.60.

1. (6 pts) Fill in the table, rounding all answers to two decimals. (It is possible for an employee to produce a fraction of a hat.)

Number of workers	Output	Marginal Product	Value of MP	Cost per worker
0
1
2
3
4
5
6
7
8
9
10