Suppose that the steelworkers' association introduces a new steel worker licensing requirement. What do you expect will happen?

Question

Quizplus · Accepted Answer

Introducing a new licensing requirement will create a barrier to entry for new workers, which will reduce the supply of steelworkers. As a result, employers will have to pay higher wages to attract and retain skilled workers. This will lead to fewer steelworkers being employed overall, but those who are employed will earn a higher wage.

Suppose That the Steelworkers' Association Introduces a New Steel Worker