Consider the Market for Nurses in a Given City

question 255

Essay

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.

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Definitions:

Efficient Output

The level of production at which a company or economy can produce the maximum amount of goods and services with the least waste of resources.

Profitable Output

The level of production at which a business or economic activity generates revenue that exceeds its operational costs.

Short Run

A period in economics where at least one input is fixed, limiting the ability to adjust production levels rapidly.

Price

The amount of money required to purchase a good or service, determined by factors such as supply and demand.