Question

Consider the market for university economics professors. Suppose the opportunity cost of going to graduate school to get a Ph.D. in economics increases for many individuals. Suppose it generally takes about five years to get a Ph.D. in economics. Holding all else constant, in five years the equilibrium quantity of university economics professors will

a.
increase.

b.
decrease.

c.
not change.

d.
It is not possible to determine what will happen to the equilibrium quantity.

Answer 1

B. Decrease

Step-by-step explanation:

Base on the scenario been described in the question, when the P.HD in economics increase, it will in turn make the equilibrium wage to increase. The labor market, sometimes called as the job market, refers to the demand and supply for labor in which employers provide the demand and employees the supply