The government increases the training requirements to obtain an electrician's license. What impact will this have in the labor market for electricians?
A)The demand for electricians will decrease, resulting in a lower wage and lower quantity of labor.
B)The demand for electricians will increase, resulting in a higher wage and higher quantity of labor.
C)The supply of electricians will decrease, resulting in a higher wage and lower quantity of labor.
D)The supply of electricians will increase, resulting in a lower wage and higher quantity of labor.

Question

Quizplus · Accepted Answer

By increasing the training requirements, the government is making it harder for people to become licensed electricians. This means that there will be fewer people entering the labor market as electricians, which will lead to a decrease in supply. With a decrease in supply and no change in demand, the wage for electricians will increase and the quantity of labor will decrease.

The Government Increases the Training Requirements to Obtain an Electrician's