Consider the market for university economics professors. Suppose the opportunity cost of going to graduate school to get a Ph.D. in economics increases for many individuals. Suppose it generally takes about five years to get a Ph.D. in economics. Holding all else constant, in five years the equilibrium quantity of university economics professors will
A)increase.
B)decrease.
C)not change.
D)It is not possible to determine what will happen to the equilibrium quantity.

Question

Quizplus · Accepted Answer

If the opportunity cost of getting a Ph.D. in economics increases for many individuals, fewer people will choose to pursue this degree. This will decrease the supply of potential economics professors, leading to a decrease in the equilibrium quantity of university economics professors in five years.

Consider the Market for University Economics Professors