The above markets are for publicists.On the left is the market for Common Cause (CC),a consumer advocacy non-profit organization.On the right is the market for the National Rifle Association (NRA),also non-profit.
-Refer to the graphs above.Suppose that a committee decides that publicists have a social value of $70,000 and all publicists will now earn $70,000.The NRA market will experience a(n)__________ and Common Cause will have a(n)__________.

Question

Quizplus · Accepted Answer

The committee setting the wage for publicists at $70,000 means that the wage has increased from the initial equilibrium in both the NRA and Common Cause markets. In the NRA market, this increase in wage will attract more workers to the industry, leading to a surplus of workers. In contrast, in the Common Cause market, the increase in wage will deter some workers from leaving the industry, leading to a shortage of workers. Therefore, the correct choice is D – shortage for Common Cause and surplus for NRA.

The Above Markets Are for Publicists