The market for economists in Greenland has recently experienced an increase in the number of economists employed and an increase in the wage paid to economists. What could have generated such a change?
A) The demand for economists recently increased while the supply of economists remained unchanged.
B) The demand for economists recently decreased while the supply of economists remained unchanged.
C) The demand for economists remained unchanged while the supply of economists increased.
D) The demand for economists remained unchanged while the supply of economists decreased.
E) The demand for economists recently decreased while the supply of economists recently increased.

Question

Quizplus · Accepted Answer

An increase in the demand for economists, with the supply remaining unchanged, would lead to both an increase in the number of economists employed and an increase in the wage paid to economists. This is because higher demand for a fixed supply raises both the price (wage in this case) and the quantity of the good (or service) consumed (or employed, in this context).

The Market for Economists in Greenland Has Recently Experienced an Increase