The services of real estate brokers are provided in a competitive market.If the state Board of Realtors enacts several requirements that limit the number of real estate brokers,which of the following is most likely to occur?
A) The supply curve of real estate brokers will shift to the left.
B) The supply curve of real estate brokers will shift to the right.
C) Social welfare will remain unchanged.
D) The supply curve will remain unchanged.

Question

Quizplus · Accepted Answer

If the state Board of Realtors enacts several requirements that limit the number of real estate brokers, it will increase the cost of becoming a broker and reduce the incentive to enter the market. As a result, the number of brokers will decrease and the supply curve will shift to the left, resulting in higher prices and lower quantity supplied. This reduction in the number of brokers will likely reduce competition in the market, leading to reduced social welfare.

The Services of Real Estate Brokers Are Provided in a Competitive