Supply and Demand of Labor Quick Check

Question

4 of 54 of 5 Items

Question
A state agency has recently removed the certification and training requirements for hairdressers in the state. What is likely to happen in the labor market for hairdressers?(1 point)
Responses

The demand for hairdressers will fall.
The demand for hairdressers will fall.

The demand for hairdressers will rise.
The demand for hairdressers will rise.

The wages paid to hairdressers will fall.
The wages paid to hairdressers will fall.

The wages paid to hairdressers will rise.

Answer 1

When a state agency removes certification and training requirements for hairdressers, this typically leads to an increase in the supply of aspiring hairdressers, as more individuals may choose to enter the profession without the barriers of certification and training.

Given this situation, the likely outcome in the labor market for hairdressers is:

The wages paid to hairdressers will fall.

As the supply of labor increases and if demand does not change, the equilibrium wage in the market tends to decrease.