The graph that represents what will happen to the equilibrium wage and quantity of labor when the government increases the requirements for licensure for a particular occupation is Graph D.
In Graph D, the supply curve shifts to the left, indicating a decrease in the quantity of labor supplied due to increased licensure requirements. This results in a higher equilibrium wage and a lower equilibrium quantity of labor in the market.
Graphs A, B, and C do not accurately represent what happens when the government increases licensure requirements for a particular occupation. Graph A shows a decrease in demand, Graph B shows an increase in demand, and Graph C shows no change in supply or demand.
Therefore, Graph D is the correct representation of the effects of increased licensure requirements on the equilibrium wage and quantity of labor.
Which of the following graphs represents what will happen to the equilibrium wage and quantity of labor when the government increases the requirements for licensure for a particular occupation? (9 points)
1 answer