Suppose the Following Two Events Occur in the Market for Elementary

question 239

Multiple Choice

Suppose the following two events occur in the market for elementary school teachers:
A.Overcrowded schools and education budget cuts have discouraged young college students from pursuing careers in teaching.
B.With an increasing birth rate, the number of children entering the elementary school system is expected to increase significantly over the next ten years.
What is likely to happen to the equilibrium wage and quantity of teachers as a result of these two events?

• A)The equilibrium quantity and the equilibrium wage of elementary school teachers fall.
• B)The equilibrium wage rises and the effect on the equilibrium quantity of elementary school teachers is indeterminate.
• C)The equilibrium quantity falls and the effect on the equilibrium wage of elementary school teachers is indeterminate.
• D)The equilibrium quantity falls and the equilibrium wage of elementary school teachers rises.

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Definitions:

Disorganized

Lacking structure, system, or planning, often resulting in confusion or chaos.

Undifferentiated

Lacking distinctive or unique features; often used in marketing to describe products or services that are not specialized or targeted to a specific audience.

Paranoid

Characterized by, or suffering from, the mental condition of paranoia, which involves pervasive distrust and suspicion of others without sufficient basis.

Mute Immobility

A state in which an individual is unable to move or speak, often as a response to extreme stress or trauma.