You have noticed that there is a persistent shortage of teachers in an inner-city school district in your state. Based on this observation, you suspect that:
A)the wage for teachers in that district is higher than the wage in other districts.
B)the wage for teachers in that district is lower than the equilibrium wage.
C)there is an excess supply of teachers in other districts.
D)the demand for teachers in the inner-city school district is too low.

Question

Quizplus · Accepted Answer

A shortage implies that the quantity demanded is greater than the quantity supplied, indicating that the price is below the equilibrium price. The "price" of teachers is their wage.

You Have Noticed That There Is a Persistent Shortage of Teachers