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Question: Wanda's is a fish store that hires students to pack the fish. Students can pack the following amounts of fish:
Number of Quantity of fish packed students (kilograms per hour)
1 20
2 50
3 90
4 120
5 145
6 165
7 180
8 190
The fish market is competitive and the price of fish is 50¢ a kilogram. The market for packers is competitive and their market wage rate is $7.50 an hour.
The market price of fish falls to 33.33¢ a kilogram, but the packers' wage rate remains at $7.50 an hour.
How does Wanda's demand for labour change? What happens to the number of students that Wanda's employs?
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