is now time to test your mastery of supply and demand. Consider the market for hospital services. Use a graph similar to the one in Figure 3.5: Label the vertical axis “Price of Hospital Services” and the horizontal axis “Quantity of Hospital Services.” Draw the supply and demand curves, and identify the equilibrium price and the quantity of hospital services. Now suppose that due to a nursing shortage, the average nurse’s salary increases 10 percent. What effect will this increased cost have on the market for hospital services? How will the increase in the average nurse's salary affect the supply or demand curve in the market for hospital services, and in which directio
is now time to test your mastery of
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