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unskilled labor are offered at the minimum wage, but companies only
want to use L1 units at that wage. Because unskilled workers are a
substitute for a skilled workers, forcing the price of unskilled workers
higher would increase the demand for skilled labor and thus increase
their wages.
Figure 4.13
[1] Richard Arnott, “Time for Revisionism on Rent Control,” Journal of
Economic Perspectives 9(1) (Winter, 1995): 99–120.
4.3 The Market for Health-Care
Services
LEARNING OBJECTIVE
1. Use the model of demand and supply to explain the effects of thirdparty payers on the health-care market and on health-care spending.
Attributed to Libby Rittenberg and Timothy Tregarthen
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Saylor.org
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