Deborah currently earns a wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.40 per gallon; in this case, Deborah's wage, in terms of the amount of milk she can buy with her paycheck, is gallons of milk per hour.

Deborah currently earns ahourly wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.40 per gallon; in this case, Deborah'shourly wage, in terms of the amount of milk she can buy with her paycheck, is5 gallons of milk per hour.

Explanation:

The wage is calculated on hourly basis per day, so Deborah currently earns a hourly wage. Unlike a salary, wage is paid per day, or per week.

If milk costs $2.40 per gallon, and

Deborah earns $12.00 per hour, then...

Deborah's hourly wage in terms of the amount of milk she can buy is

==> $12.00 ÷ $2.40 = 5 gallons of milk per hour.

answer; rapid growth in buyer demand and high buyer switching cost;