In recent years, the gap between the wages of workers with college degrees and the wages of workers without college degrees has been increasing.

a. What does this fact tell us about how much in recent years the demand for workers with college degrees has shifted relative to how much the supply of workers with college degrees has shifted? Draw a graph to illustrate your answer. Be sure your graph shows the shifts in the labor demand and labor supply curves and any changes in the equilibrium wage and the equilibrium quantity of workers hired.

b. Would we expect the size of the gap in wages to increase or decrease over time? What information would help to increase your confidence in your answer?