King Rat (gkr) wrote,
King Rat

Eco 200: market analysis

(group) Market analysis

Review the market analysis section in the lecture. What would we expect the market to look like if some group, say analysts, were underpaid? Explain.

The supply of market analysts would go down. Assuming that those who are good market analysts are also good at other things, they will find other opportunities that pay more. So the supply will also be of lower quality. Analyst pay would also go up as demanders sought to keep them. At least as long as the analyst work product was still valuable.

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