At the current starting salary of $40,000 per year the number of new graduates of business schools demanded is 100,000 per year while the number supplied is 120,000. Based on this information you could conclude that
A. the labor market for new business school graduates is in equilibrium
B. There is a shortage of new business school graduates in the market
C. The equilibrium wage of business school graduates is less than $40,000 per year
D. the equilibrium wage of business school graduates is more than $40,000 per year
Answer: C