Assume that you are analyzing the hospital services market.

Assume that you are analyzing the hospital services market. *For scenarios a-c, explain whether each of the following result in a change in demand, change in quantity demanded, change in supply, or change in quantity supplied in the hospital services market. Draw and label a positively sloped supply curve and negatively sloped demand curve in your diagram to depict each scenario. a.

A surplus of nurses results in a decrease in the average wage paid to nurses. Note: Nurses are an input in the production of hospital services. 

b.Insurers place an increased emphasis on increasing the number of same day surgeries and reducing the number of hospital stays for the insurance pool by reducing reimbursements related to hospital stays.

 c.Widespread hospital mergers occur, resulting in the closure of some small hospitals and a lack of entry by new hospitals.