Suppose computer technicians have been making earning a high wage rate and the number of individuals becoming computer technicians doubles.Then,in the market for computer technicians,
A)the equilibrium wage rate for computer technicians fall and the number of technicians hired falls.
B)demand increases because there are so many more technicians available.
C)because demand is not changing,no more computer technicians are hired.
D)the number of computer technicians employed falls as the market becomes saturated.
E)the equilibrium wage rate for computer technicians falls.

Question

Quizplus · Accepted Answer

When the number of individuals becoming computer technicians doubles, the supply of computer technicians increases. This shifts the supply curve to the right, causing the equilibrium wage rate to fall. Additionally, the increase in supply allows firms to hire more technicians at a lower wage rate, so the quantity of technicians hired increases. Therefore, the best choice is E, as it correctly identifies that the equilibrium wage rate for computer technicians falls.

Suppose Computer Technicians Have Been Making Earning a High Wage