There are several reasons why economic graduates are often well paid. An economics degree is held in high esteem as a qualification. Graduates tend to be more skilled and tend to work in jobs with a lot of stress and responsibility. For example, data analysts and economists.

1.1 The diagram below shows the demand and supply of economics graduates and non-graduates.

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1.2 It can be seen that graduates have a high demand for their services.

This is because graduates may be more productive and work faster. Thus, the demand for graduates is more inelastic than non-graduates.