-Suppose in Canberra the quantity of economists demanded is less than the quantity supplied by 2,000 economists. As a result,

Question

Quizplus · Accepted Answer

When the quantity of economists demanded is less than the quantity supplied, it indicates a surplus of economists. In a market, a surplus typically leads to a decrease in price to clear the excess supply. In the labor market, this "price" is the salary. Therefore, salaries for economists would fall to encourage more hiring and reduce the surplus.

-Suppose in Canberra the Quantity of Economists Demanded Is Less