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The following table presents data for wages in the market for internet security professionals.In the labor market the roles are reversed. Those who want to hire labor are the demanders. The workers enter the work force providing labor to the market place so they are the suppliers. Wage Quantity Demanded Quantity Supplied $50,000 20,000 14,000 $60,000 18,000 18,000 $70,000 16,000 22,000 $80,000 14,000 26,000 $90,000 12,000 30,000
What is the equilibrium wage? Now, consider this scenario: Due to an increase in the internet security threats, the government wants to apply a price control in this market to encourage more people to become internet security professionals. Assume that a wage control is set at $75,000. Will this increase the number of people entering this labor market? Why or why not? Will this increase the number of people hired? Why or why not?
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