Suppose the Following Events Occur in the Market for University

question 98

Multiple Choice

Suppose the following events occur in the market for university economics professors.
Event 1: A recession in the U.S.economy lowers the opportunity cost of going to graduate school in economics to become a university economics professor.
Event 2: An increasing number of students in U.S.primary and secondary schools increases the number of students entering college,increasing the output price of university economics professors' services.
As a result of these two events,holding all else constant,what will likely happen to the equilibrium wage of university economics professors?

• A) The equilibrium wage will increase.
• B) The equilibrium wage will decrease.
• C) The equilibrium wage will not change.
• D) It is not possible to determine what will happen to the equilibrium wage.

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Definitions:

Cerebrospinal Fluid

A clear, colorless body fluid found in the brain and spinal cord, acting as a cushion for the brain's cortex, providing basic mechanical and immunological protection.

Tissues

Groups of similar cells that perform a specific function within an organism, making up organs and other parts of the body.

Sponges

Simple aquatic animals belonging to the phylum Porifera, characterized by porous bodies through which water flows.

Echinoderms

A phylum of marine animals including sea stars, sea urchins, and sand dollars, characterized by radial symmetry and a unique water vascular system.