Consider the market for accountants' services. Using standard notions of demand and supply, for each of the following scenarios, identify whether it could be illustrated by shift of the demand or supply curve (left or right?) and explain how the equilibrium price and quantity would change if the following things happen, ceteris paribus; a. in reaction to corporate financial scandals in the USA, the UK government forces all companies to impose stricter financial and accounting controls. b. The UK Chartered Accountants decides to limit the number of accountants entering the market by making the Board exam particularly difficult.
Consider the market for accountants' services. Using standard notions of
a. in reaction to corporate financial scandals in the USA, the UK government forces all companies to impose stricter financial and accounting controls.
b. The UK Chartered Accountants decides to limit the number of accountants entering the market by making the Board exam particularly difficult.
c. More students at university graduate with accounting degrees because they believe that accounting earn higher salaries than anyone else.
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