equilibrium quantity is 41,000 nurses. At an above-equilibrium salary of $90,000, quantity supplied increases to

45,000, but the quantity of nurses demanded at the higher pay declines to 40,000. At this above-equilibrium salary,

an excess supply or surplus of nurses would exist. At a below-equilibrium salary of $75,000, quantity supplied

declines to 34,000, while the quantity demanded at the lower wage increases to 47,000 nurses. At this below-

equilibrium salary, excess demand or a shortage exists.

Annual Salary Quantity Demanded Quantity Supplied

$70,000

52,000

$75,000

47,000

$80,000

44,000

$85,000

41,000

$90,000

40,000

$95,000

39,000

27,000

34,000

38,000

41,000

45,000

48,000

TABLE 4.1 Demand and Supply of Nurses in Minneapolis-St.

Paul-Bloomington

The horizontal axis shows the quantity of nurses hired. In this example we measure labor by number of

workers, but another common way to measure the quantity of labor is by the number of hours worked. The
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