Question

(b) How would the following factors affect the supply of services in your proposed program?\

My program is Quitting smoking

1- A new law requires that health education programs hire only staff with master degrees.

2-

The wage rate of health personnel decreased.

Answer 1

1. This will lead an increase in the supply of services. This is because a masters degree candidate will be more efficient in his work than a Bachelor's degree candidate, and thus the amount of work that a Master's degree candidate can do will be much more. Therefore, the supply of services will be higher in this case.

2. A reduction in wage rate of health personnel will lead to a refuting in supply of services because then obly candidates with lesser ability and skills will be willing to take up the job, and lesser skills would translate into lower productivity and lower supply of services.