If a teachers' union negotiates a wage for all college professors above the equilibrium wage rate,the market supply curve of college professors becomes _____

Question

Quizplus · Accepted Answer

By negotiating a wage above the equilibrium, the union is creating an artificial surplus of college professors, which in turn will cause an excess supply. This will cause some professors who were not employed before to enter the workforce because of the higher wage rate. As the number of professors increases, the supply curve starts sloping upward. However, since the union has negotiated for a fixed wage rate, the supply curve becomes horizontal at the negotiated wage rate.

If a Teachers' Union Negotiates a Wage for All College