According to the article Nurses Are in High Demand, the demand for nurses is increasing. The shift comes after years of relative equilibrium in nurse demand and supply. Fundamentally, an increase in nurse retirements is one of the causes contributing to the growing demand (Evans, 2016). A lack of nurses in the face of growing patient demand is another reason that has led to an increase in nurse demand. The change in demand is a projection of a movement to the right in the demand curve.
According to the paper, the supply of nurses is decreasing (Evans, 2016). There is a regional shortage of nurses across America. This is because nurses are exiting the workforce faster than they are entering. Alternatively, nurses are cutting back hours as a result of the resurgence of the economy in recent years. Areas such as New England, Pennsylvania, Florida and Nebraska are forecasted to experience shortage of supply in the future (Evans, 2016). A reduction in supply shifts the supply curve to the left. This is a reflection of the change in the supply of nurses.
Question 3
In the event of an increase in demand and a decrease in supply, the equilibrium quantity would remain indeterminate while the equilibrium price would increase. Consequently, an increase in demand for nurses and a reduction in their supply leads to an increase in wages. Furthermore, it negates the surplus labor given that equilibrium quantity is indeterminate in such a situation. The availability of surplus is influenced by how far the demand curve for nurses shifts to the right relative to how far the supply curve shifts to the left.
Question 4
In other regions, those which experience increased demand and reduced supply, the wages would increase significantly. That is why nurses are paid more in some regions more than in other regions.
Reference
Evans, M. (2016, November 7). Nurses Are Again in Demand. Retrieved from The Wall Street Journal: http://www.wsj.com/articles/nurses-again-in-demand-1478514622
