You have noticed that there is a persistent shortage of teachers in an inner-city school district in your state. Based on this observation, you suspect that:
A)the wage for teachers at those schools is higher than at other schools in the state.
B)the wage for teachers at those schools is lower than the equilibrium wage.
C)there is an excess supply of teachers.
D)the reservation price among teachers is lower than for other professions.

Question

Quizplus · Accepted Answer

The persistent shortage of teachers in an inner-city school district suggests that either the wage offered is lower than the equilibrium wage or there are other factors, such as poor working conditions, that are discouraging teachers from applying to those schools. As a result, the demand for teachers is greater than the supply, leading to a shortage. Therefore, choice B is the best option.

You Have Noticed That There Is a Persistent Shortage of Teachers