Many more people become high school economics teachers, what will happen to the labor market for high school economics teachers?
A) The market equilibrium wage will increase, and the equilibrium quantity of labor will increase.
B) The market equilibrium wage will decrease, and the equilibrium quantity of labor will decrease.
C) The market equilibrium wage will increase, and the equilibrium quantity of labor will decrease.
D) The market equilibrium wage will decrease, and the equilibrium quantity of labor will increase.
D) The market equilibrium wage will decrease, and the equilibrium quantity of labor will increase.
C) The market equilibrium wage will increase, and the equilibrium quantity of labor will decrease.
Explanation:
When there is an increase in the number of people becoming high school economics teachers, the supply of teachers in the labor market will increase. This increase in supply will result in a downward pressure on wages, as there is a larger pool of teachers available for hire. As a result, the market equilibrium wage will decrease.
In addition, with more people entering the profession, the quantity of labor (number of high school economics teachers) available will increase. However, the increase in supply is likely to be greater than the increase in demand for economics teachers, resulting in an excess supply of labor. This will cause the equilibrium quantity of labor to decrease.
Therefore, the correct answer is C) The market equilibrium wage will increase, and the equilibrium quantity of labor will decrease.
To determine the effect on the labor market for high school economics teachers when many more people become teachers, we need to consider the relationship between supply and demand.
When more people become high school economics teachers, the supply of economics teachers will increase. This means there are more individuals available and willing to work as economics teachers.
If the demand for high school economics teachers remains constant, the increase in supply will result in an excess supply of economics teachers.
In this scenario, option C) is the correct answer: The market equilibrium wage will increase, and the equilibrium quantity of labor will decrease.
As there is an excess supply of economics teachers, schools can be more selective and offer lower wages. This will lead to a decrease in the market equilibrium wage.
Additionally, to attract and retain teachers, schools may reduce the number of available teaching positions. This decrease in demand for labor will result in a decrease in the equilibrium quantity of labor.
In summary, an increase in the number of people becoming high school economics teachers will lead to a decrease in the market equilibrium wage and a decrease in the equilibrium quantity of labor.