Consider the market for university economics professors.Consider the following events. Event 1: Because of the dot.com bust of 2000 and the recession in the U.S.economy,the opportunity cost of going to graduate school to get a Ph.D.in economics - which one needs to become a professor of economics - decreased for many individuals.It generally takes about five years to get a Ph.D.in economics.
Event 2: There is an increasing number of students in primary and secondary U.S.schools.In 2005,the number of students entering college will have increased dramatically.Because of this,the output price of university economics professors' services will increase.
Holding all else constant,because of these two events,what likely will happen to the equilibrium wage of university economics professors in 2006?

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The Answer of Consider the market for university economics professors.Consider the following events. Event 1: Because of the dot.com bust of 2000 and the recession in the U.S.economy,the opportunity cost of going to graduate school to get a Ph.D.in economics - which one needs to become a professor of economics - decreased for many individuals.It generally takes about five years to get a Ph.D.in economics.
Event 2: There is an increasing number of students in primary and secondary U.S.schools.In 2005,the number of students entering college will have increased dramatically.Because of this,the output price of university economics professors' services will increase.
Holding all else constant,because of these two events,what likely will happen to the equilibrium wage of university economics professors in 2006?

Consider the Market for University Economics Professors