(Solved): 1. The demand for labor Consider Live Happley Fields, a small player in the strawberry business wh ...

1. The demand for labor Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices. Live Happley's production schedule for strawberries is given in the following table: Suppose that the market wage for strawberry pickers is \( \$ 118 \) per worker per day, and the price of strawberries is \( \$ 16 \) per pound. On the following graph, use the blue points (circle symbol) to plot Live Happley's labor demand curve when the output price is \( \$ 16 \) per pound. Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1 , the marginal revere product of the first worker should be plotted with a horizontal coordinate of \( 0.5 \), the value halfway between 0 and 1 . Line segments will automatically connect the points. At the given wage and price level, Live Happley should hire Suppose that the price of strawberries decreases to \( \$ 12 \) per pound, but the wage rate remains at \( \$ 118 \). On the previous graph, use the purple points (diamond symbol) to plot Live Happley's labor demand curve when the output price is \( \$ 12 \) per pound. Now Live Happley should hire when the output price is \( \$ 12 \) per pound. Assuming that all strawberry-producing firms have similar production schedules, a decrease in the price of strawberries will cause the strawberry pickers to Suppose that wages decrease to \( \$ 100 \) due to a decreased demand for workers in this market. Assuming that the price of strawberries remains at \( \$ 12 \) per pound, Live Happley will now hire