Three years ago, law school admits deciding whether or not to attend the schools they were admitted to typically underestimated the future demand for lawyers. This forecasted demand corresponded with salaries that many admits were unwilling to accept, and fewer students than usual ended up attending law school. Now that these students have completed law school, the small graduating classes have led to a more limited supply of lawyers than is generally available. What will be the result of this mismatch?

Respuesta :

Answer:

Limited Supply of lawyers will lead to increase in Lawyer Wages / Salaries

Explanation:

Labour Markets are at equilibrium where : Labour Demand (by firms) = Labour Supply (by employees).

Analysing the labour market for Lawyers : Previous anticipations finally leading to small graduating classes & limited supply of lawyers. This limited supply creates excess demand of lawyers. The mismatched excess demand (by firms) creates competition among buyer firms, which leads to increase in price (wages or salaries) of lawyers.

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