Consider the market for university economics professors.Suppose the opportunity cost of going to graduate school to get a Ph.D.in economics decreases for many individuals.Since it generally takes about five years to get a Ph.D.in economics,holding all else constant,what will likely happen to the equilibrium quantity of university economics professors in five years?

Question

Quizplus · Accepted Answer

If the opportunity cost of going to graduate school to get a Ph.D. in economics decreases, then more individuals will likely choose to pursue this path. This should ultimately increase the number of individuals who become university economics professors, thus increasing the equilibrium quantity in the market. Since it takes about five years to get a Ph.D., we would expect to see this increase in equilibrium quantity occur over the course of five years.

Consider the Market for University Economics Professors