Question

If the supply of computer engineers increases at the same time that the demand for these workers decreases, what would be the MOST LIKELY effect on wages for these workers?

Answer 1

Fall in the wages of these workers.

Step-by-step explanation:

If there is an increase in the supply of computer engineers, and simultaneously there is a decrease in the demand for computer engineers. Now, the supply of computer engineers exceeds the demand for computer engineers which indicates that there are not enough job opportunities for the computer engineers. This will lead to the creation of unemployment in an economy. In this situation of an economy, the bargaining power is in the hands of the firms or employers.

So, the lower wages will be offered by the firms and workers accept that level of wages because of unemployment.