In the legal sector, some practice areas have declined in recent years. For exam

Question

In the legal sector, some practice areas have declined in recent years. For example, personal-injury and medical-malpractice cases have been undercut by state laws limiting class-action suits, out-of-state plaintiffs, and payouts on damages, and securities class-action litigation has declined in part because of a buoyant stock market. How does this affect the market for lawyers?

(A) The demand for lawyers shifts to the left.

(B) The supply of lawyers shifts to the left.

(C) The quantity of lawyers demanded decreases and this is represented by a movement along the demand curve.

(D) Both the demand and supply curves decrease.

(E) None of the above.

Explanation / Answer

Option A

The demand for lawyers would decrease because less lawyers would now be hired for solving the cases for which there have been a decline.

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