Demographers predict that the average age of the population of the U.S.will increase.One result will be an increase in the demand for nurses.Assume that the graph below describes the current nursing labor market in a mid-sized city,and that the market is a competitive one.
In the long run,if the nursing market is perfectly competitive,the demographic shift that increases the demand for nurses is likely to

Question

Demographers predict that the average age of the population of the U.S.will increase.One result will be an increase in the demand for nurses.Assume that the graph below describes the current nursing labor market in a mid-sized city,and that the market is a competitive one. 
In the long run,if the nursing market is perfectly competitive,the demographic shift that increases the demand for nurses is likely to

Quizplus · Accepted Answer

In a perfectly competitive market, an increase in demand will lead to an increase in equilibrium quantity (number of nurses) and price (wages of nurses). As the demand for nurses increases due to the demographic shift, employers will have to offer higher wages to attract and retain enough nurses to meet the demand. This increase in wages will provide a greater incentive for people to choose nursing as a career. Therefore, option A is correct. Option B is incorrect because a competitive market ensures that employers have to offer better working conditions to attract and retain workers. Option C is incorrect because a persistent shortage of nurses would imply that wages are not increasing enough to attract more nurses, which would not be the case in a perfectly competitive market. Option D is incorrect because a shift back to the original demand is unlikely if the demographic shift is long-term and persistent.

Demographers Predict That the Average Age of the Population of the U.S.will