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.

a. What did they predict would happen to economists’
salaries?

b. What likely happens to the excess economists?

c. Why doesn’t the price change immediately to bring the quantity supplied and the quantity demanded into equilibrium?