Suppose the Following Events Occur in the Market for University

question 36

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 quantity of university economics professors?

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