The following table lists the name, gender, height, and minimum wage 10 people are willing to accept to work as sales clerks at a high-end clothing store.

NameGenderHeightMinimum Wage
(Inches)(Dollars per week)
TimM66$306
BethF66$328
EleanorF68$350
AndrewM70$361
DarnellM70$383
KyokoF66$405
JacquesM71$427
SeanM70$449
MusashiM63$460
RinaF68$482
The lowest wage that the clothing store can pay to hire five sales clerks is
per week.
Suppose the head of the clothing store has a preference for tall employees because he thinks it will increase revenue, and thus, he imposes the restriction that all sales clerks hired must be at least 67 inches in height. Under this new regulation, the wage rate the clothing store must pay to attract five sales clerks rises by
per week.

Ans:

(1) Lowest possible wage is $383.
[At this wage, the 5 employees willing to work are: Tim, Eileen, Kate, Clancy and Hubert, because their required minimum wage is less than or equal to $383].

(2) Employees at least 67 inches tall and their minimum acceptable wage are:
(Kate, $350), (Clancy, $361), (Hubert, $383), (Manuel, $427), (Antonio, $449) and (Valerie, $482).
To get 5 employees out of these 6, minimum wage = $449.
[At this wage, the 5 employees willing to work are: Kate, Clancy, Hubert, Manuel and Antonio, because their required minimum wage is less than or equal to $449].
Increase in minimum wage = $449 - $383 = $66

Economics

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