Scenario:

In the country of Netherlands, a government study found that the average physics professors earn an hourly rate of 60 EURO. Data collected directly from employers and anonymous employees in Netherlands show that in this labor market of average physics professors, the equilibrium wage is

30 EURO/hour. Apply your analysis to the scenario described above to answer the following questions:

• Why may universities want to keep wages of these physics' professors at 60 EURO/hour?
• Should the average physics professors' hourly rate be 30 EURO?

Explain thoroughly with words + graph.