Higher wages for data analysts would NOT cause
some people to switch jobs to become data analysts.
some people to enter the workforce as data analysts.
existing data analysts to work longer hours.
the supply curve for data analysts to shift.
The Correct Answer and Explanation is :
The correct answer is: the supply curve for data analysts to shift.
Explanation:
In economics, the supply curve represents the relationship between the price (or wage) of a good or service and the quantity supplied by producers or workers. In this case, the “good” is labor, and the “producers” are data analysts.
When wages for data analysts increase, several things can happen:
- Some people may switch jobs to become data analysts: Higher wages make the job more attractive, so individuals in other professions may decide to transition into data analysis. This is an example of the substitution effect, where higher wages in one field encourage workers to shift from other occupations.
- Some people may enter the workforce as data analysts: Higher wages act as an incentive for new individuals to join the data analyst workforce, including those who may have been hesitant to enter the field due to lower pay. This is part of the entry effect, where the increased wage encourages new workers to supply their labor.
- Existing data analysts may work longer hours: Higher wages may encourage current data analysts to work more hours, as the higher wage increases the financial reward for doing so. This could mean either more overtime or a decision to take on additional projects.
However, the supply curve for data analysts would NOT shift. The supply curve itself represents the total number of data analysts available in the workforce at various wage levels. An increase in wages causes a movement along the supply curve, not a shift. A shift in the supply curve happens when there is a change in factors other than wages, such as changes in technology, education, or working conditions.
In summary, while higher wages can lead to more people entering the workforce or switching jobs to become data analysts, it does not cause the supply curve to shift. Instead, it leads to a movement along the existing supply curve.