How would a labor market that is competitive and initially in equilibrium be aff

Question

How would a labor market that is competitive and initially in equilibrium be affected by these changes? A labor market for university professors when college enrollment expands? Or the labor market for workers who have only completed high school when the workplace becomes more computerized? How would a labor market that is competitive and initially in equilibrium be affected by these changes? A labor market for university professors when college enrollment expands? Or the labor market for workers who have only completed high school when the workplace becomes more computerized?

Explanation / Answer

a) when college enrollment increases, the student professor ratio in a class would also become more. Tehre would be more students for a single professor and the university might want to hire more professors and this would increase the demand for professors and the wage rate or the salaries for professors would increase.

b) Similarly when the workplace become computerised there would be displacement of labor as more computers would replace the workers who have completed only high school and the demand for labour force (for those who have completed only high school) will decrease. And with the supply of labour being the same, the wage rate for such workers would decrease.

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