If a group of professionals successfully lobby the government to require workers in their profession to have a license,the most likely result will be a(n)
A)reduction in the supply of such professionals and a decrease in their wage rate
B)reduction in the demand for such professionals and an increase in their wage rate
C)reduction in the supply of such professionals and an increase in their wage rate
D)reduction in the demand for such professionals and a decrease in their wage rate
E)increase in the demand for such professionals and an increase in their wage rate

Question

Quizplus · Accepted Answer

Requiring a license to work in a profession reduces the supply of professionals because it creates a barrier to entry for new professionals. This reduction in supply would lead to an increase in the wage rate for the existing professionals in that field, as their services become more valuable due to the reduced supply.

If a Group of Professionals Successfully Lobby the Government to Require