Consider the Labor Market for Computer Programmers

question 539

Multiple Choice

Consider the labor market for computer programmers. Because of the dot.com boom in the late 1990s, a lot of workers went to school to learn how to write computer code for one of thousands of new dot.com companies. However, when these computer programming students graduated the dot.com bust took place. The dot.com bust decreased the value of the marginal product of computer programmers. Holding all else equal what effect did these two circumstances have on the equilibrium quantity in the labor market for computer programmers?

• A)The equilibrium quantity of labor increased.
• B)The equilibrium quantity of labor decreased.
• C)The equilibrium quantity of labor did not change.
• D)It is not possible to determine what happens to the equilibrium quantity of labor.

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Definitions:

Positioning Approach

A marketing strategy that aims to establish a brand or product in a specific way in the minds of the target consumers.

Competitive Repositioning

A strategic approach in marketing where a company changes its place in the marketplace to compete more effectively with rivals.

Product Repositioning

Changing the place a product occupies in a consumer’s mind relative to competitive products.

Competitive Products

Goods or services that are in direct competition with one another in the marketplace, targeting the same customer base.