Stan is a mild-mannered Economics professor at the University of Idaho. One day he is casually going about his business when some unfortunate events occur. First, a student is openly playing a game on his (or her) phone while Stan is lecturing. This student didnt even move to the back row to perform such activities, as decorum would dictate. Second, a student makes a comment that Stans class is a joke.He uses his Economics background to determine the productivity function: = 20 , where Q = number of squirrels caught and L = number of students hired each day to work the traps. This means his marginal productivity of labor is: = 10 . Stan can rent a fixed number of traps for $200 per day.

a. (3 points) Suppose Stan can sell each squirrel (pelt/meat) for $24. He must pay each worker $80 per day. What will Stans short-run labor demand be? How much will his company produce, and how much daily profit should he expect?

b. (3 points) A pandemic hits the UI campus. The squirrel population thrives as people attend school remotely and no longer drive near the campus. Stans marginal productivity increases to = 15 . Wages and the prices of squirrel pelts/meats are not impacted by the pandemic. Solve to determine Stans new labor demand. Discuss the change briefly and sketch the impact of the pandemic on a simple demand diagram.