The diagram below shows the supply and demand for labour in a hypothetical town in northern British Columbia,with only one employer,a logging company.
FIGURE 14- 4
-Suppose that a professional association strengthened the limits to entry into their profession and at the same time lengthened its required apprenticeship program.The likely effect would be that

Question

The diagram below shows the supply and demand for labour in a hypothetical town in northern British Columbia,with only one employer,a logging company.
  FIGURE 14- 4
-Suppose that a professional association strengthened the limits to entry into their profession and at the same time lengthened its required apprenticeship program.The likely effect would be that

Quizplus · Accepted Answer

Strengthening the limits to entry and lengthening the apprenticeship program would make it harder for individuals to enter the profession, which would lead to a decrease in the supply of labour. This would cause the supply curve to shift to the left. The demand for labour would likely remain the same, as the logging company still needs the same amount of workers to operate. Therefore, the equilibrium wage rate would increase, but the quantity of labour employed would decrease.

The Diagram Below Shows the Supply and Demand for Labour