Assignment Ch. 12 (Questions 1-5) below

Assume that themarket for nursesis perfectly competitive, and that the initial equilibrium wage for registered nurses is $30 per hour.Illustrate graphically how each of the following events will affect the demand or supply for nurses. State the impact on wages and on the number of nurses employed.

Note: For eachnumber below you mustfirst start off by drawingboth the demand and supply curves in equilibrium.

Only then, after determining what the event is andwhether it will change the demand or supply curve will you draw the new demand or supply curve inyour graph. From there you can look at the new equilibrium point in comparison to theinitial equilibrium todetermine the impact on wages (did it remain the same, rise or fall) and the number of nurses employed (did it remain constant, rise or fall).

1. New hospital instruments reduce the amount of time physicians must spend with patients in intensive care and increase the care that nurses can provide.
2. The number of doctors increases.
3. Changes in the labor market lead to greater demand for the services of women in a wide range of occupations. The demand for nurses, however, does not change.
4. New legislation establishes primary-care facilities in which nurses care for patients with minor medical problems. No supervision by physicians is required in the facilities.
5. The wage for nurses rises.