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)
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 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 increase.
The correct answer is:
The market equilibrium wage will increase, and the equilibrium quantity of labor will increase.