The Bureau of Labor statistics identifies a trend in the labor market for doctors, where wages have increased significantly over the past several years. As a result of this trend, more individuals within the economy enter the labor market to become doctors. How does this influence wages and employment within the labor market?(1 point)
Responses
The market equilibrium wage will decrease, and the equilibrium quantity of labor will increase.
The market equilibrium wage will decrease, and the equilibrium quantity of labor will increase.
The market equilibrium wage will increase, and the equilibrium quantity of labor will increase.
The market equilibrium wage will increase, and the equilibrium quantity of labor will increase.
The market equilibrium wage will increase, and the equilibrium quantity of labor will decrease.
The market equilibrium wage will increase, and the equilibrium quantity of labor will decrease.
The market equilibrium wage will decrease, and the equilibrium quantity of labor will decrease.
The market equilibrium wage will decrease, and the equilibrium quantity of labor will increase.
The correct response is:
The market equilibrium wage will increase, and the equilibrium quantity of labor will increase.
The correct response is:
The market equilibrium wage will increase, and the equilibrium quantity of labor will increase.
When wages for doctors increase, it becomes more attractive for individuals to pursue a career in medicine. This leads to an influx of individuals entering the labor market as doctors, resulting in an increase in the equilibrium quantity of labor. Additionally, the increased demand for medical services drives up the market equilibrium wage for doctors.