Consider the market for nurses in a given city. In each of the following cases, explain what happens to the equilibrium wage rate and the quantity of nurses hired
a. One of the major hospitals in the city closes.
b. A record number of students graduate with bachelor's degrees in nursing.
c. Traditionally, nursing is a field that attracts women. However, changes in access to education and to the labor force participation rate by women have led to a greater demand for the services of women in a wide range of occupations. The demand for nurses, however, does not change.
d. Advances in medical technology reduce the amount of time physicians must spend with patients in intensive care and increase the time that nurses spend with patients.
a. The demand curve shifts to the left. The equilibrium wage decreases and the equilibrium quantity of nurses hired decreases.
b. The supply curve shifts to the right. The equilibrium wage decreases and the equilibrium quantity of nurses hired increases.
c. The supply curve shifts to the left. The equilibrium wage increases and the equilibrium quantity of nurses hired decreases.
d. The demand curve shifts to the right. Both the equilibrium wage and the quantity of nurses hired increase.
You might also like to view...
Why is the demand curve the same as the marginal benefit curve?
What will be an ideal response?
To counteract steep declines in the birth rate, some countries have offered stipends to pregnant women and subsidies for parents who have a second child. These financial supports are examples of ______.
a. factor payments b. opportunity costs c. positive incentives d. human capital
Import bans, import quotas, voluntary export restraints (VERs), and tariffs on goods all:
A. increase equilibrium quantities and prices. B. decrease equilibrium quantities and prices. C. increase equilibrium quantities, but decrease prices. D. decrease equilibrium quantities, but increase prices.
Which of the following factors are highly related to the pace of economic? development?
What will be an ideal response?