An increase in the number of students graduating with a major in engineering would result in
A) a decrease in the supply of engineers that would increase the wage of engineers and decrease the number employed.
B) an increase in the supply of engineers that would decrease the wage of engineers and increase the number employed.
C) a decrease in the demand for engineers that would decrease the wage of engineers and decrease the number employed.
D) an increase in the demand for engineers that would increase the wage of engineers and increase the number employed.

Question

Quizplus · Accepted Answer

An increase in the number of students graduating with a major in engineering would increase the supply of engineers in the market. According to the law of supply and demand, an increase in supply would lead to a decrease in wage rates and an increase in the number of engineers employed. Therefore, the correct option is B.

An Increase in the Number of Students Graduating with a Major