Suppose the year is 2023, and Dan has fallen on hard times. We dont need to go into all the details here, but lets just agree that Dan needs a lot of money to pay someone back or bad things might start happening to his physical health and that of his friend and family. He decides to start a campus marketing business. He will hire students to perform one of two tasks: (1) behind the scenes data collection and entry, creating statistical reports, creating marketing materials, and (2) out front promoting directly to students around campus, visiting classrooms and giving presentations. Since there are others in town willing to hire students, assume the labor market is competitive. Dan is trying to determine how much to offer as an hourly wage for each of the types of jobs. He decides the behind scenes (BS) job will offer a wage of $20 per hour. He next creates a function that represents his demand for the out front (OF) jobs. He comes up with the demand function: W^D = 30 0.3Q, where W^D is the difference in hourly wage for the OF jobs (W^D = W^OF W^BS) and Q is the number of OF-type workers.

Dan subtly surveys his classes as part of an in-class exercise. From this, he determines the supply of workers for the OF type of job is best described by the equation: W^D = -10 + 0.5Q.

- Discuss what this function tells us about worker preferences for the two types of jobs, and whether this seems reasonable to you.

- What wage would Dan need to offer for the OF job if he wants to hire 10 students for this position? Explain this wage differential briefly.

- If Dan wanted to pay the same wage for the two types of jobs, how many people would he be able to hire for the OF job? Based on what we know, would it be efficient for Dan to offer the same wage for these two types of jobs? Explain your reasoning.

b. (3 points) Solve to determine how many workers you expect Dan to hire for the OF job, and what wage he will end up offering. Sketch and label a simple diagram of this situation.

c. (4 points) Suppose the supply curve for the OF jobs changes to W^D = -18 + 0.5Q.

- Explain the intuition behind this shift and give an example of something that might have caused it.

- Solve to determine what will happen to the number of workers in the OF job and the wage differential between the two jobs. Explain the intuition behind these changes.