Answered

Why is the equilibrium wage for doctors high?

A. Because the demand for doctors tends to be lower relative to supply.
B. Because the demand for doctors equals the supply.
C. Because the supply of doctors is relatively high and the demand is relatively low.
D. Because the supply of doctors is relatively low and the demand is relatively high.



Answer :

GinnyAnswer

Final answer:

The high equilibrium wage for doctors is primarily due to the relatively low supply compared to the high demand for their services.


Explanation:

Doctors' equilibrium wage is high because the supply of doctors is relatively low compared to the high demand for their services. This imbalance leads to a higher equilibrium wage as employers are willing to pay more to attract these professionals. In the labor market, the intersection of the demand and supply curves determines the equilibrium wage.


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