Question

How does the concept of "equilibrium" work when considering the supply of cardiologists in a market?

Answer 1

If we consider a market, the wage rate that is to be paid to laborers is determined at the point where supply and demand intersect each other. The intersection point is the equilibrium point where demand and supply of labor are equal in the market.

We can apply the "equilibrium" concept of economics in the same way to the supply of cardiologists in a market. In the situation when the supply of cardiologists is more, then the equilibrium prices fall down and the salary or money earned by cardiologist falls as there are a greater number of cardiologists available for doing the treatment of patients.

When the demand for cardiologists increases, then the equilibrium prices go up and a higher amount of money is earned by them for giving treatment to patients. In this case, the demand for cardiologists is high in the market and accordingly, the supply will take place.