Hospitals announce that there are not enough nurses available to keep them fully staffed. Economically speaking, what does this announcement mean?
A) The market wage for trained nurses is currently above the equilibrium wage.
B) There is currently a surplus of nurses in this market.
C) The market wage for nurses will eventually rise to the market clearing wage.
D) The market will adjust very rapidly to correct this imbalance because anyone can be a nurse without any training.

Question

Quizplus · Accepted Answer

This announcement indicates a shortage of nurses, which typically leads to an increase in wages to attract more nurses, moving the market towards the equilibrium or market clearing wage.

Hospitals Announce That There Are Not Enough Nurses Available to Keep