The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-The returns that skilled engineering professionals earn consist of both transfer earnings and economic rent. This implies that:

Question

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2
 
-The returns that skilled engineering professionals earn consist of both transfer earnings and economic rent. This implies that:

Quizplus · Accepted Answer

The concept of transfer earnings and economic rent suggests that part of the income skilled engineering professionals earn is the minimum they would accept (transfer earnings), while the rest is above this minimum due to their unique skills or market conditions (economic rent). This implies that more professionals would be willing to work as their wages increase, leading to an upward-sloping supply curve.

The Figure Given Below Shows the Demand [D and D']