The Market for Engineers Is Initially in Equilibrium

question 29

Multiple Choice

The market for engineers is initially in equilibrium. The demand curve for engineers shifts up. Assume the naive cobweb model holds such that in the first period, the labor supply is fixed, in the next period, wages are fixed, and so on. In period three, how will wages compare to its new long run level?

• A) Wages will be below its long run level.
• B) Wages will equal its long run level.
• C) Wages will be above its long run level.
• D) uncertain (need more information)

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Definitions:

External Parties

Individuals or organizations outside of an organization who can be affected by its activities or who can impact the organization's performance.

Open Innovation

A business model that encourages companies to both use external ideas and inventions in their own business practices and allow their unused internal ideas to be used by other organizations.

External Sources

Information, resources, or support obtained from outside an organization or individual's immediate environment.

External Sources

Information, support, or materials obtained from outside an individual's immediate environment or organization.