In contrast, if the salary is below the equilibrium at, say, $60,000 per year, then a situation of excess demand or

a shortage arises. In this case, employers encouraged by the relatively lower wage want to hire 40,000 nurses,

but only 27,000 individuals want to work as nurses at that salary in Minneapolis-St. Paul-Bloomington. In

response to the shortage, some employers will offer higher pay to attract the nurses. Other employers will have

to match the higher pay to keep their own employees. The higher salaries will encourage more nurses to train

or work in Minneapolis-St. Paul-Bloomington. Again, price and quantity in the labor market will move toward

equilibrium.

Shifts in Labor Demand

The demand curve for labor shows the quantity of labor employers wish to hire at any given salary or wage

rate, under the ceteris paribusassumption. A change in the wage or salary will result in a change in the
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