Question

Assume D2 is the relevant demand curve. If new licensing rules cause the supply of crane operators to fall to S2
A.)The equilibrium pay rate will be $90,000.
B.) Economic rent will fall for the 490 crane operators.
C.) Economic rent will increase for the first 209 operators.
D.) The equilibrium pay rate will equal $100,000.
E.) The economic rent for all crane operators will fall to zero.
(Their Two Answer Choices)

Answer 1

option A and option c