If many students choose to study to become accountants, when all of these students eventually graduate, we can expect accountant's wages to ________, and the equilibrium number of accountants will ________
A)rise, increase
B)drop, increase
C)rise, decrease
D)drop, decrease

Question

Quizplus · Accepted Answer

When many students choose to study to become accountants and eventually graduate, the supply of accountants increases. According to the law of supply and demand, an increase in supply, with demand remaining constant, typically leads to a decrease in price (wages, in this case). Therefore, we can expect the wages for accountants to drop and the equilibrium number of accountants to increase as the market adjusts to the higher supply.

If Many Students Choose to Study to Become Accountants, When