Answer to Question #5612 in Microeconomics for Bessie Allen

Question

consider the labor market for computer programming. because of the dot.com boom in the late 1990's a lot of workers went to school to learn how to write computer code for one of thousands of new dot.com companies. however when these computer programming students graduated the dot.com bust took place. the dot.com bust decreased the value of the marginal product of computer programmers. holding all else equal what affect did these two circumstances have on the equilibrium wage in the labor market for computer programmers a. eequilibrium wage increased b. decreased c. not change. is not possible to determine what happens