Which of the following is correct?
A) An increase in the number of students choosing to major in marketing would likely lead to an increase in the wage earned by marketing graduates.
B) A new law allowing nurses to offer patients some of the medical services that are currently only available through doctors would increase the wage rate earned by doctors.
C) An increase in the demand for newly constructed homes would lead to a reduction in the price of lumber.
D) New licensing requirements that substantially lowered the number of plumbers would likely lead to an increase in the wage rate of plumbers.

Question

Quizplus · Accepted Answer

According to the laws of supply and demand, a reduction in the supply of plumbers due to new licensing requirements will lead to an increase in the wage rate of plumbers as the demand for their services is likely to stay constant or even increase. Therefore, option D is correct while the other options are incorrect.

Which of the Following Is Correct