Supply and Demand

Supply and Demand - The equilibrium price for lawyers will...

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Supply and Demand According to our text every market whether its job related or marketing products must have a demand in order for the product (supply) to be produced. The Wall Street Journal reported a shortage of demand for law school graduates in the legal field. A demand exists only when consumers are willing or able to pay for a certain service or product. Law school graduates are the participants in the market for legal careers. A market surplus is the amount by which the quantity supplied exceeds the quantity demanded, therefore a law school graduate waiting to find a job in the law field will be in vain until the quantity of lawyers in demand decrease and need for more lawyers increase.
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Unformatted text preview: The equilibrium price for lawyers will change whenever the supply or demand for legal services shift in either direction. If the demand for lawyers increase the salary for lawyers will also increase but if the demand for lawyers decreases the salary for lawyers will also decrease. Whenever the market price for lawyers is placed above or below the equilibrium price, either a market surplus or market shortage will occur. Reference Thomas, C. & Maurice, S. (2011). Managerial economics : Foundations of business analysis and strategy (10th ed.). New York: McGraw-Hill....
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This note was uploaded on 07/07/2011 for the course BUSINESS 350 taught by Professor Mitchell during the Fall '09 term at Troy.

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