The demand for orthodontists services falls as the proportion of the population

Question

The demand for orthodontists services falls as the proportion of the population that obtains braces falls. It may take several years before the new long run equilibrium for the orthodontic labor market is attained. In the meantime, the orthodontic labor market experiences a
A) quality decrease B) shortage C) surplus D) excess demand The demand for orthodontists services falls as the proportion of the population that obtains braces falls. It may take several years before the new long run equilibrium for the orthodontic labor market is attained. In the meantime, the orthodontic labor market experiences a
A) quality decrease B) shortage C) surplus D) excess demand In the meantime, the orthodontic labor market experiences a
A) quality decrease B) shortage C) surplus D) excess demand

Explanation / Answer

With decrease in demand for orthodontists service, labor demand in the orthodontic market also decreases because in orthodontic market less number of labor will be hired to produce reduced no. of services that is being demanded now. But labor supply remains the same. It means labor supply exceeds labor demand which will cause surplus of labor in the orthodontic labor market.

Answer- option C

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