Assignment:
The following diagram illustrates the market for nurses.
Part 1: Americans are living longer and, as a result, need more medical care throughout their lives. Use a line drawing tool to show the effect of this demographic change on either the supply of or demand for nurses. Label the new curve D2 or S2.
Part 2: Suppose that at the same time as this demographic change occurs, more college students decide to major in nursing. Use a line drawing tool to show the effect of this change on either the supply of or demand for nurses. Label the new curve D2 or S2.
Part 3: Use the double drop line tool to show the new equilibrium price and quantity in the market after both of these changes. Label this new point E2.