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Scenario 27

Suppose the following events occur in the market for university economics professors.

Event 1: A recession in the U.S. economy lowers the opportunity cost of going to graduate school in economics to become a university economics professor.

Event 2: An increasing number of students in U.S. primary and secondary schools increases the number of students entering college, increasing the output price of university economics professors' services.

Refer to Scenario 27. As a result of these two events, holding all else constant, the equilibrium wages of university economics professors will

Group of answer choices

increase.

decrease.

not change.

It is not possible to determine what will happen to the equilibrium wages.