Answer to Question #48238 in Economics for Nathan

Question

In which case equilibrium wage for doctors will fall down in Salt Lake City?

a) If cost of medical school increases, which will decrease supply for doctors.
b) If cost of medical equipment increases, which will increase the demand for doctors.
c) If wages for doctors in Salt Lake City are lower than wages in Provo, and as a result in the
long run labor (doctors) move to Provo to work, while capital (hospitals) move to Salt
Lake City.
d) In none of the cases above equilibrium wage of doctors will fall.

Answer 1

d) In none of the cases above equilibrium wage of doctors will fall.