Suppose the Following Two Events Occur in the Market for Elementary

question 138

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 university 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:

Units Produced

The quantity of finished goods that a company manufactures over a specific period, often used to assess production efficiency.

Cash Collected

The total amount of cash received by a business or organization from its various activities, including sales, investments, and financing.

Ending Inventory

The total value of goods available for sale at the end of an accounting period.

August

The month that falls eighth in the sequence of the Gregorian calendar year.