Suppose that this graph describes the current labor market for high school teachers:
Suppose the market were to re-equilibrate following a shift of the supply curve to the left.At the new equilibrium,wages would be

Question

Suppose that this graph describes the current labor market for high school teachers: 
Suppose the market were to re-equilibrate following a shift of the supply curve to the left.At the new equilibrium,wages would be

Quizplus · Accepted Answer

When the supply curve shifts to the left, there are fewer teachers available at any given wage level. This will lead to an increase in wages as employers compete for the limited supply of teachers. However, with fewer teachers available, fewer will be hired overall. Therefore, the new equilibrium will result in higher wages but fewer teachers being hired, matching option B.

Suppose That This Graph Describes the Current Labor Market for High