The indifference principle states that, in the long run, if an asset is mobile, then it will be

indifferent about where it is used. That is, the asset will earn the same profit no matter where it
goes. This implies that unappealing employment will pay compensatory salary differentials, and
riskier investments will pay compensating risk differentials. According to indifference curve
analysis, the rational consumer has so many such points of indifference, depending on their
budget/expenditure and other substantial factors that can affect the consumer's preferences
between two goods. The budget controls the maximization of this utility, particularly because
only two goods could provide the same utility, causing the consumer to become indifferent. In
addition, the indifference principles, when applied to the labor market, imply that wages will
adapt to restore equilibrium. In this situation, the professorial position is more desirable than
other occupations due to an increase in a non-salary bonus. However, as more individuals want
to be professors, the supply of labor in this field will grow in the long run, lowering wages. At the
same time, when people who work in such industries seek employment as faculty members, the
supply of labor in other fields will decrease. Earnings in other industries rise as a result. Salaries
for new faculty members will continue to fall until they are as attractive as any other job. People
will no longer be motivated to seek a career as a college professor, and the labor supply for
academic positions will dry up. Since the supply of employees has stopped growing, wages
have stopped declining. Despite the increased benefits, incomes have decreased at this new
equilibrium, making professor positions as desirable as other vocations.