Assume that the graph below describes the current labor market for nurses in a mid-sized city and that the labor market is perfectly competitive. If supply shifts from S₀ to S₁ and demand shifts from D₀ to D₁, then the equilibrium wage will ________, and the equilibrium number of nurses will ________.

Question

Assume that the graph below describes the current labor market for nurses in a mid-sized city and that the labor market is perfectly competitive.  If supply shifts from S₀ to S₁ and demand shifts from D₀ to D₁, then the equilibrium wage will ________, and the equilibrium number of nurses will ________.

Quizplus · Accepted Answer

The two shifts result in a higher equilibrium wage, but no change in the equilibrium number of nurses.

Assume That the Graph Below Describes the Current Labor Market