Answered: 2. What will happen to the income of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. What will happen to the income of pediatricians? in the early 1990s, concerns about the supply of pediatricians led to an expansion of pediatric training. As a result, the number of pediatricians is expected to grow from about 45,000 in 2005 to about 60,000 in 2022. In contrast, the number of children is expected to grow by less than 10 percent, meaning that the number of children per pediatrician should fall by 20 percent (Shipman Lurie, and Goodman 2004). The decline in the number of children per pediatrician seems likely to result in lower incomes for pediatrician. Further, this decrease may be amplified by the emergence of retail clinics that are staffed by nurse practitioners and offer convenient, walk in services for many common childhood illnesses. Model the effects of the drop in the number of children per pediatrician using per pediatrician demand and supply services. How do you expect those curve to shift over time? What impact will this shift have on the incomes of pediatrician? If the retail clinic continue to expand , how will they affect the market for pediatricians services? If the incomes of pediatrician started dropping, would you expect the number of pediatricians to continue to grow?

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