Question

Assume that the INS increases the number of visas available for registered nurses (RNs) coming into the US. Trace through the effect of such a policy in each of the medical care markets including the markets for RNs, RN education, hospital services, and health insurance. Show your answers on the graphs provided on the next page and state what happens to equilibrium quantity and price under each graph. *** there is 4 charts that I don't know how to attach. I can describe them. Market for RN's.(wages) Market for RN Education(tuition)

Answer 1

Market for RN's wages

As now the supply of registered nurses is increased after increasing number of visas, supply curve shifts from S1 to S2 and wages decreased from w1 to w2.

Market for RN education

As now more students want to take nurse's course so demand will be increased from D1 to D2 and the tuition fees will be increased from P1 to P2.

Market for Hospital service

As now supply of nurses increased so the price of hospital service is decreased from P1 to P2.

Market for Health insurance

As now health service is improved, the supply of insurance will also be increased so premium will be decreased from P1 to P2.