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Suppose there are only two doctors: Doctor #1 and Doctor #2. Let Doctor #1 labor supply function be L = 10 P 0 . 05
Suppose there are only two doctors: Doctor #1 and Doctor #2. Let Doctor #1 labor supply function be L = 10P 0.05P^2. Let Doctor #2 labor supply function be L = 2P.
(a) Graph both Doctor #1 and Doctor #2 labor supplies.
(b) Graph the aggregate supply curve for doctor labor. Is it backward bending? [Remember that aggregate supply is the sum of the quantities supplied from the individual supply curves at each price.]
(c) What happens to the aggregate supply of doctor labor if price (P) falls from $200
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