Suppose the quantity of nursing services demanded exceeds the quantity of nursing services supplied. The nursing wage rate will:
A) decrease.
B) increase.
C) not change.
D) none of the above

Question

Quizplus · Accepted Answer

If the quantity of nursing services demanded exceeds the quantity of nursing services supplied, this suggests a shortage of nurses. A shortage of nurses means that there are more job openings for nurses than there are nurses to fill them, so employers will have to compete for the available nurses by offering higher wages. Therefore, the nursing wage rate will increase.

Suppose the Quantity of Nursing Services Demanded Exceeds the Quantity