Why is the equilibrium wage higher for doctors than for convenience store clerks?
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A. The demand for convenience store clerks is equal to the demand for doctors.
B. Supply of doctors is relatively low, and the demand is relatively high.******
C. The demand for convenience store clerks is low, but supply is low, too.
D. Supply of doctors is relatively high and the demand is relatively low.
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To understand why the equilibrium wage is higher for doctors than for convenience store clerks, we need to consider the factors of demand and supply for each profession. The equilibrium wage is determined by the intersection of the demand and supply curves in the labor market.
In this case, option B - "Supply of doctors is relatively low, and the demand is relatively high" - is correct.
Doctors require extensive education and specialized skills, which limits the supply of qualified individuals. Additionally, the demand for doctors is typically high due to the necessity of healthcare services. The combination of low supply and high demand leads to a higher equilibrium wage for doctors.
On the other hand, convenience store clerks generally require less specialized skills and education, resulting in a larger supply of potential workers. The demand for convenience store clerks may also be lower compared to doctors, as these positions are often considered low-skilled and relatively easy to fill. Therefore, the equilibrium wage for convenience store clerks is typically lower due to a higher supply and potentially lower demand.
Understanding the concepts of demand and supply and how they affect equilibrium wages can help explain why certain occupations, like doctors, may earn higher wages compared to others, such as convenience store clerks.