Suppose mobile app engineers have been making earning a high wage rate and the number of individuals becoming mobile app engineers doubles. Then, in the market for mobile app engineers,
A)the equilibrium wage rate for mobile app engineers fall and the number of mobile app engineers hired falls.
B)demand increases because there are so many more mobile app engineers available.
C)because demand is not changing, no more mobile app engineers are hired.
D)the number of mobile app engineers employed falls as the market becomes saturated.
E)the equilibrium wage rate for mobile app engineers falls.

Question

Quizplus · Accepted Answer

If the number of individuals becoming mobile app engineers doubles, then the supply of mobile app engineers increases, assuming that demand remains unchanged. As a result, the equilibrium wage rate for mobile app engineers will fall as employers will be able to hire more mobile app engineers at a lower wage rate. This is the basic principle of supply and demand in the labor market. Option A is partially correct in that the equilibrium wage rate will fall but the number of mobile app engineers hired will actually increase due to the larger supply. Option B is incorrect as an increase in supply would not increase demand. Option C is incorrect as the increase in supply would allow for more hiring to occur. Option D is also incorrect as the market becoming saturated would imply an excess supply of mobile app engineers, not an increase in demand.

Suppose Mobile App Engineers Have Been Making Earning a High