Question

If the supply of computer engineers increases at the same time that the demand for these workers decreases, what would be the MOST LIKELY effect on wages for these workers?
A) Wages would stay the same as job opportunities increase.
B) Wages would increase as the number of workers increases.
C) Wages would decline as the competition for jobs increases.
D) Wages would increase as competition for these workers increases

If a drug company is granted a patent on a new medication, which result is possible?
A) a price ceiling
B) government control of that drug
C) a monopoly in the production of that medication
D) perfect competition in the market for that drug

Answer 1

If the supply increases as demand decreases then you can expect wages to remain stagnant or decrease since there will be a surplus of computer engineers available

Answer 2

The correct answers are:

C) Wages would decline as the competition for jobs increases; and C) a monopoly in the production of that medication.

Explanation:

If we have a surplus of employees for a decrease in the amount of jobs, it is likely that employers will lower wages, since there is no difficulty in finding employees.

If one company produces a new drug, and no other companies are producing it, there could potentially be a monopoly for that drug.