Each year the demand for lawyers remains constant. However, the number of law graduates continually increases each year. Assume these graduates wish to work in the legal profession. The supply and demand curves mentioned below refer to the market for legal services. Answer the following questions: a. The increased number of law graduates will have an impact on legal services in what way? . Type DR for Demand shifts Right, DL Demand shifts Left, SR Supply shifts Right, SL Supply shifts Left or U for Unknown. b. The film “The Wolf of Wall Street” has changed many law students’ opinions on the finance industry. As a result, a large percentage of the law graduates have decided not to enter the legal services profession and instead pursue a career in finance after graduation. Which curve will be affected and in what way? . Type DR for Demand shifts Right, DL Demand shifts Left, SR Supply shifts Right, SL Supply shifts Left, U for Unknown. c. Combining your answers from part a. and part b., if the magnitude of the two changes are equal, what will be the resulting effect on the market price? . Type H for Higher, S for remains the Same, L for Lower or U for Unknown.

The QM University of Technology over the past few years has increased the number of law bachelor degree positions available for prospective students. The price of each subject in this law degree has also increased over the same period by $100/year. Which of the following statements are true: The quantity supplied of QM's law degrees will definitely fall in the future. A decrease in demand for law degrees at QM would have resulted in them increasing prices each year and making more positions available. QM could only have increased the number of positions available and decreased the price by increasing the supply of their law degrees. There is a proportional relationship between quantity supplied and the price of QM's law degrees.

Between 2009 and 2010 the number of potential jobs for qualified law students fell by 16%. During the same period the total number of applicants for places on law courses increased.What is the most likely explanation for this?1 pointA an economic recession and an increase in general unemploymentB an increase in crime rates and the possibility of high salaries in the legal professionC an increase in the retirement age for existing lawyers and an increase in law course feesD the merger of law firms and the closure of law courses

Consider a potential trading relationship between a law firm and a business client. The marginal cost of production for the law firm is given by MC = 2q, where q is the quantity of legal services provided. The demand curve for the client is MB = 150 – q. Note, however, that it is difficult to ascertain how many unit of legal service are actually provided. To (partially) remedy this, the law firm can adopt a recording system at a cost of $150. Similarly, for $150 the client can implement an auditing system to try to verify the number of legal services actually provided by the law firm. However, even if both firms implement the auditing and recording systems, only 30 units of legal services will actually be traded. What is the total agency cost? a. $800 b. $900 c. $1000 d. $1100 e. None of the above

Law of demand

The law of supply and demand states that:Group of answer choicesQuantity demanded increases as price decreases and quantity supplied increases as price increasesIn the absence of market frictions, that the market price will adjust so that demand equals supplyIn the absence of market frictions, the market price will adjust so that the elasticity of demand equals the elasticity of supplyThe market will always be in equilibrium