Since the September 11th attack there has been an increase in the demand for security personnel: police, air marshals, airport security, etc. How do you think the higher demand has affected the equilibrium wage?

paperpusher

The demand for security personal is rising. So the demand curve will move upwards. The supple will not rise in the short run because in order to be a guard you have to have the expertise, the training, etc., but you don' have the time.(technology factor)So, in the short run, wages will go up, because of the more demand and the deficit of supply. In the long run, more people will go to special forces, taking karate lessons, etc and the supply will raise too. So in the long run, supple will meet demand and the wages will be at the previous equilibium.