Scenario 17-1 In Academia, Professors in Some Disciplines Receive Higher Salaries Than

question 7

Multiple Choice

Scenario 17-1
In academia, professors in some disciplines receive higher salaries than others. For example, professors teaching in business schools receive higher salaries than professors in the English department. Suppose at Unity College, assistant professors in the business school earn $80,000 while assistant professors in the English department earn $50,000. Now suppose the government passes comparable worth legislation that requires academic institutions to pay all faculty the same salaries.
-Refer to Scenario 17-1.Following the passage of comparable worth legislation, Unity College responds by placing salaries for all assistant professors at $80,000.Which of the following is the result of the legislation?

• A)The supply of English professors increases; the market for business professors is not affected.
• B)The demand for English professors decreases; the market for business professors is not affected.
• C)There will be a surplus in the market for English professors and a shortage in the market for business professors.
• D)There will be a surplus in the market for English professors and the market for business professors will not be affected.

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