Suppose that this graph describes the current labor market for high school teachers: Suppose supply of labor decreases. At the new equilibrium, wages would be ________ and ________ teachers would be hired.

Question

Suppose that this graph describes the current labor market for high school teachers:  Suppose supply of labor decreases. At the new equilibrium, wages would be ________ and ________ teachers would be hired.

Quizplus · Accepted Answer

As in markets generally, a decrease in supply leads to an increase in price (here, wage)and a decrease in quantity demanded (here, teachers).

Suppose That This Graph Describes the Current Labor Market for High