Scenario 18-6
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.
-Refer to Scenario 18-6. As a result of these two events, holding all else constant, the equilibrium quantity of university economics professors will
A)increase.
B)decrease.
C)not change.
D)not be able to be determined without more information.

Question

Scenario 18-6
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.
-Refer to Scenario 18-6. As a result of these two events, holding all else constant, the equilibrium quantity of university economics professors will
A)increase.
B)decrease.
C)not change.
D)not be able to be determined without more information.

Quizplus · Accepted Answer

Event 1 would likely increase the supply of university economics professors by making graduate school more attractive, and Event 2 would increase the demand for university economics professors due to more students entering college. Both these changes, holding all else constant, would lead to an increase in the equilibrium quantity of university economics professors.

Scenario 18-6 Suppose the Following Events Occur in the Market for University