Suppose that the labor market for high school chemistry teachers is initially in equilibrium. Chemistry teachers use laboratory chemicals as an important part of their jobs. New environmental regulations ban the use of many chemicals, which means that fewer laboratory chemicals are available for high school chemistry teachers to use in their jobs. What happens to the equilibrium wage and quantity
of high school chemistry teachers?
a. Both the equilibrium wage and quantity increase.
b. Both the equilibrium wage and quantity decrease.
c. The equilibrium wage increases, and the equilibrium quantity decreases.
d. The equilibrium wage decreases, and the equilibrium quantity increases.
b
You might also like to view...
"When the Fed is concerned with an inflationary gap it buys government securities." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
According to the graph shown, the monopolistically competitive firm:
These are the cost and revenue curves associated with a monopolistically competitive firm.
A. will cause deadweight loss equal to area C.
B. will earn profits equal to area B.
C. should act like a monopolist in the short run.
D. should leave the industry in the long run.
According to classical economists,
a. full employment means zero unemployment b. as long as markets clear, no government action is needed to ensure full employment c. even if all markets clear, government action is needed to correct labor market imperfections if the economy is to reach full employment d. as long as markets clear and government provides jobs to those who need them, the economy will be at full employment e. even if markets clear, cyclical unemployment will still persist in the long run
If most bankers could do what they wanted, they would probably hold reserves of about
A. 0%. B. 2%. C. 7-8%. D. 10-12%. E. 22-25%.