Many hospitals have recently complained of nursing shortages, where they cannot hire as many nurses as they would like at the current salary. Which of these might be a cause or consequence of the nursing shortage? Do not worry about the underlying facts; only whether the explanations make economic sense given our model. (Select all that apply from below) (a) The number of patients has increased, raising demand for nurses. (b) The number of patients has decreased, lowering demand for nurses. (c) Doctor’s salaries have risen, and nurses are a complement to doctors. (d) Doctor’s salaries have risen, and nurses are a substitute to doctors. (e) Nursing has flipped from an inferior good to a luxury good. (f) More people want to work as a nurse, raising the supply of nurses. (g) Fewer people want to work as as nurse, lowering the supply of nurses.
Many hospitals have recently complained of nursing shortages, where they cannot hire as
many nurses as they would like at the current salary. Which of these might be a cause or
consequence of the nursing shortage? Do not worry about the underlying facts; only whether
the explanations make economic sense given our model. (Select all that apply from below)
(a) The number of patients has increased, raising demand for nurses.
(b) The number of patients has decreased, lowering demand for nurses.
(c) Doctor’s salaries have risen, and nurses are a complement to doctors.
(d) Doctor’s salaries have risen, and nurses are a substitute to doctors.
(e) Nursing has flipped from an inferior good to a luxury good.
(f) More people want to work as a nurse, raising the supply of nurses.
(g) Fewer people want to work as as nurse, lowering the supply of nurses.
(h) In a competitive equilibrium, the salary of nurses will rise.
(i) In a competitive equilibrium, the salary of nurses will fall.
(j) The nursing market will clear where quantity demanded exceeds quantity supplied.
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