Suppose the following events occur in the market for university economics professors.
Event 1: A recession in the U.S.economy lowers the opportunity cost of going to graduate school in economics to become a university economics professor.
Event 2: An increasing number of students in U.S.primary and secondary schools increases the number of students entering college,increasing the output price of university economics professors' services.
As a result of these two events,holding all else constant,what will likely happen to the equilibrium wage of university economics professors?

Question

Quizplus · Accepted Answer

The Answer of Suppose the following events occur in the market for university economics professors.
Event 1: A recession in the U.S.economy lowers the opportunity cost of going to graduate school in economics to become a university economics professor.
Event 2: An increasing number of students in U.S.primary and secondary schools increases the number of students entering college,increasing the output price of university economics professors' services.
As a result of these two events,holding all else constant,what will likely happen to the equilibrium wage of university economics professors?

Suppose the Following Events Occur in the Market for University