Question

Sam works as a transcriptionist for $30,000 per year, and Janet works as a jet propulsion specialist for $73,000 per year. Which of the following statements could best explain the disparity in their incomes?
A. Janet's expertise is in low supply and low demand.
B. Janet's expertise is in low supply and high demand.
C. Sam's expertise is in high supply and high demand.
D. Sam's expertise is in low supply and high demand.

Answer 1

Answer:

B. Janet's expertise is in low supply and high demand.

Explanation:

Sam's transcription occupation is in high supply and low demand ; this means that there are a lot more transcriptionist available to work than open positions employers are offering. This pushes down the salary and that explains why Sam earns $30,000 per year. Janet's occupation on the other hand pays high salary of $73,000 per year which indicate that jet propulsion specialists are in high demand but there is a shortage of expertise in the market.