As the general population has aged, there has been an increase in the number of nursing homes, community health facilities, along with the development of home care facilities

Economics Dec 09, 2020

As the general population has aged, there has been an increase in the number of nursing homes, community health facilities, along with the development of home care facilities. All of these factors have produced an increase in the demand for nurses. Simultaneously, improved job opportunities for women in other fields have reduced the supply of nurses. Despite these factors, hospitals, the major employers of nurses, have resisted wage increases. The resulting situation can be described as:

a. a non-binding wage ceiling problem

b. a wage floor problem

c. a surplus of nurses

d. a shortage of nurses

Expert Solution

The answer is d. a shortage of nurses.

This is because there is a greater demand for nurses and the lower supply (i.e. due to better opportunities) has resulted in the quantity supplied of nurses to be below the quantity demanded.

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