If a professional organization imposes strict licensing procedures that increase entry costs for new members,then labor
A)supply will fall,and the equilibrium wage rate will rise
B)supply will fall,and the equilibrium wage rate will fall
C)supply will rise,and the equilibrium wage rate will fall
D)demand will rise,and the equilibrium wage rate will rise
E)demand will rise,labor supply will fall,and the equilibrium wage rate will rise

Question

Quizplus · Accepted Answer

When strict licensing procedures are imposed, it becomes more difficult and expensive for new members to enter the profession, causing a decrease in labor supply. This decrease in supply, coupled with a constant or increasing demand for the service, will cause the equilibrium wage rate to rise.

If a Professional Organization Imposes Strict Licensing Procedures That Increase