Suppose the above New York Times article, which stresses thehazards associated to exposure to this dangerous chemical, changesthe attitudes of the work force toward being employed in firms withimpure air. Worker 1 now has a reservation price of 41 cents;worker 2’s reservation price is 42 cents; worker 3’s reservationprice is 43 cents, and so on. As before, there are 150 jobs infirms without air purification systems, and this number is fixed.Thus, the demand for workers in jobs with impure air is perfectlyinelastic.
a. Find the new equilibrium wage differential between safe andrisky jobs. Draw this equilibrium labeling as many points as
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