Friday, September 26, 2014

Learning economics through pictures - law school enrollment and the law of supply

For many years, there has been chatter that the returns to a law degree aren't what they used to be.  (E.g., see this).  Other stories have talked about how tough it is to find a job after graduation.  All of this would indicate that the returns on a law degree are lower than they once were or that the price one earns from being a lawyer has dropped.

Today I saw this chart:

The law of supply states that when the price drops, fewer suppliers will enter a market.  This chart shows that the market for lawyers is consistent with the law of supply.

Link to source article here

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