Question

Suppose that you observe that the wages for accountants in your town have gone up and that the number of accountants employed has also gone up. Which one of the following conditions could explain this? Illustrate your answer with a graph and explain it in a brief paragraph.

A. Businesses are failing, reducing the need for accountants.

B. Many accountants are leaving the field in order to train to become financial analysts instead.

C. A rash of business scandals has increased the demand for auditing services performed by accountants.

D. The local university has just graduated an unusually large group of accountants.

Answer 1

Market for for Accountants wage SA > supply SA for accountants DA Demand for accountants DA Qty of Lo Accountants as option increase wag as We have to find a situation where both equilibrium wage as well as of accountants increase is incorrect this will reduce demand for accountants and decrease wage and no of accountants option ® is in correct as this will reduce supply of accountants, but decrease of accountant well. is correct this option will increase the demand for accountants Shift the demand curve rightwards from DA to WA to wi Increasing Lo to 4 Increasing no of accountants from SA Market equilibrium Wi Shifts from point A to 가 Di point B wages from B TW, Wo 1 DA LO L >

option is incorrect this will increase the supply of accountants and decrease equilibrium wage — Х Х HOPE THIS HELPS 09 UPVOTE! KINDLY