Consider the labor market for nurses. Becoming a nurse requires several years of
ID: 1206448 • Letter: C
Question
Consider the labor market for nurses. Becoming a nurse requires several years of school and training-a significant human capital investment. The following graph shows two labor supply curves for nurses: an orange supply curve labeled "S (Orange)" and a purple supply curve labeled "S (Purple)": 50 45 40 35 30 25 S (Orange) S (Purple S 15 10 Demand 0 3 6 9 12 15 18 21 24 27 30 LABOR (Millions of nurses) The curves depict the supply of nurses over two time horizons: the short run and the long run. Part of your assignment is to determine which curve represents which time period than Because the long-run supply curve for nurses is the short-run supply curve responsive to changes in wage than the short-run supply curve, this curve is less Suppose that the population ages, and the highe more er of elderly people leads to an increase in demand for medical services. As a result, the labor demand for nurses (derived from the demandf I services) increases from Di to D2Explanation / Answer
More, flatter
In long run all factors are variable, so long run supply is elastic.
8 ; From labor supply curve, we can see that at $30, 8 hours will be supplied on x axis
9 ; correspomdimg to 2 hours on Supply curve, wages are $9
fewer ; As wage rate declines Suplly also declines.