Consider the labor market for heath care workers.Because of the aging population in the United States,the output price for health care services has increased.Holding all else equal,what effect does this have on the equilibrium wage of health care employees?

Question

Quizplus · Accepted Answer

The increased output price for health care services leads to an increase in demand for health care workers, as more resources are being allocated towards healthcare. This increase in demand leads to an increase in the equilibrium wage as employers compete to hire from a limited pool of skilled workers. Therefore, the equilibrium wage for health care employees increases.

Consider the Labor Market for Heath Care Workers