Suppose that the labour market for plumbers is in equilibrium.Which occurrence might DECREASE the wage for plumbers?
A) An economic boom increases the demand for new homes.
B) The plumbers union establishes a rigorous certification test that is difficult for aspiring plumbers to pass.
C) Unemployed manufacturing workers attend technical schools to learn the plumbing trade.
D) A minimum wage is imposed in the market for plumbers.

Question

Quizplus · Accepted Answer

An increase in the supply of plumbers due to unemployed manufacturing workers attending technical schools to learn the plumbing trade would shift the supply curve to the right, causing a surplus of plumbers and a decrease in the equilibrium wage. Option A is incorrect because an economic boom would increase the demand for plumbers, which would raise the wage. Option B and D are incorrect because they would increase the cost of becoming a plumber and the cost of hiring a plumber, respectively, leading to higher wages.

Suppose That the Labour Market for Plumbers Is in Equilibrium