Question

Economists Mark Blaug and Ruth Towse studied the market for economists in Britain and found that the quantity demanded was about 150 to 200 a year, and that the quantity supplied was about 300 a year. What likely to happen when there is a surplus of economists in Britain

Answer 1

Answer: See explanation

Explanation:

In this case, since the supply is more than the demand for Economists in the country, this will lead to a lower wage for the Economists that are employed. This is because there are surplus Economists which can be readily called if those employed aren't willing to collect the lower wages.

Also, the excess Economists can move to other countries where their services will be needed. In some cases, they may take jobs that are similar to their practice such as researchers, marketing roles etc.