Comment by sincerely
3 months ago
In most fields of study, you eventually learn that the information from 101 classes are broad oversimplifications at best. I would be surprised if economics was an exception
3 months ago
In most fields of study, you eventually learn that the information from 101 classes are broad oversimplifications at best. I would be surprised if economics was an exception
Fact: If the job paid 10X what it does, we would have more than enough of applicants.
Fact: Somewhere between 1X and 10X is a salary where we would have enough applicants.
It's objectively true.
Whatever prior assumptions prompt you to second guess this obvious, objective truth are ripe for reanalysis.
microeconomics holds up amazingly well.
things get complicated of course as the situation under analysis gets further and further from the ideal setup, as data gets more scarce, and so on.
but the job market is pretty darn close to the simple model, and this question is also close to the ideal (how much more price need to rise for supply to meet demand, we draw the graph based on data from other professions, and boom, there's our answer, if we want to get very fancy we can do various models to try to estimate the curves.)