When supplying labour in the education sector, professors take into account the wage a worker such as themselves could potentially earn in an alternate sector. Letwbe the wage in education andWabe the expected wage in an alternate sector.

A.These answers must be numerical. Use the codes given below.WhenWaincreases:

Labour supply in education will____and labour demand in education will____.

B. If the quantity of labour supplied in education is given byLs = 4w, graph the labour supply curve. The graph has slope____and vertical intercept_____. Suppose two professors are attracted by the increase in the alternative wage and leave the education sector. The new quantity supplied of labour will be equal to Ls' = Ls - 2. On the same graph, draw the new labour supply curve. It has slope_____and vertical intercept______.

C.These answers must be numerical. Use the codes given below.After the two professors leave, the equilibrium wage will_____and the number of professors working in this sector will______. Demonstrate why using your graph (you may sketch any representative demand curve).

Use the following codes:

For "decrease" enter "-1"

For "remain unchanged" enter "0"

For "increase" enter "1"

For "possibly increase or decrease" enter "3"