How is the labor market for estheticians affected if the government requires estheticians to have licenses to work in the field?
A)Market demand decreases, leading to a lower equilibrium wage and a lower quantity of labor.
B)Market demand increases, leading to a higher equilibrium wage and a higher quantity of labor.
C)Market supply increases, leading to a lower equilibrium wage and a higher quantity of labor.
D)Market supply decreases, leading to a higher equilibrium wage and a lower quantity of labor.

Question

Quizplus · Accepted Answer

Requiring licenses for estheticians decreases the supply of workers in the market because not everyone will meet the qualifications for a license. This leads to a decrease in the quantity of labor available, which in turn increases the equilibrium wage for estheticians. Thus, supply decreases, leading to a higher equilibrium wage and a lower quantity of labor.

How Is the Labor Market for Estheticians Affected If the Government