2. On the diagram below draw in a Supply Curse for Labor (nurses) and the Demand Curve for Nurses. Where the two lines intersect we call the equilibrium wage, which we will just say is something like $30 per hour. Let's say the government thinks the wage of $30 per hour is TOO LOW for nurses in the United States, so the make a law requiring nursing wages to be AT LEAST $45 an hour. Draw that line in at the $45 dollar and hour wage rate. What do you think will happen on this diagram in the short run, and eventually in the long run?

2. On the diagram below draw in a Supply Curse for Labor (nurses) and the Demand Curve for Nurses. Where the two lines intersect we call the equilibrium wage, which we will just say is something like $30 per hour. Let's say the government thinks the wage of $30 per hour is TOO LOW for nurses in the United States, so the make a law requiring nursing wages to be AT LEAST $45 an hour. Draw that line in at the $45 dollar and hour wage rate. What do you think will happen on this diagram in the short run, and eventually in the long run?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter4: Labor And Financial Markets

Section: Chapter Questions

Problem 15RQ: Name some factors that can cause a shift in the demand curve in labor markets.

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