Requirement 2. At what level of revenues will CathyCathy Rugs earn the same operating income under either option? a. For what r
ange of unit sales will CathyCathy Rugs prefer option 1? b. For what range of unit sales will CathyCathy Rugs prefer option 2? Begin by determining the formula to calculate the operating income where each option is equal.
1 answer:
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The new ordinance will make a difference when the new wages will be binding.
<h3>How to depict the information?</h3>It should be noted that the supply curve shows the relationship between the price and the quantity supplied.
Based on the information given, when the equilibrium wage is above the minimum wage, the ordinance won't make a difference.
On the other hand, when the equilibrium wage is below the minimum wage, it'll make a difference for the worker.
Therefore, joining the lowest of the two points will give the equilibrium.
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