ECON545: Project 1—Microeconomic Analysis Essay

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Pages: 8

ECON 545 Microeconomic analysis
Project 1

Situation A

My situation has to do with my niece Jenny. Jenny is a super intelligent high-school student who wants to make intelligent choices about her future so she’s decided to call upon me for advice in regard to possibly pursuing a career as a doctor and on the best location to practice medicine. She got wind that I am currently taking a business course in economics and decided to e-mail me for information on the market for physicians in terms of supply and demand, elasticity, costs of production, pricing, and economic profit and loss. As a caring uncle, I definitely recognize the significance of choosing a career
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(NIH, 2014) When observing the supply side of the physicians, it has been projected that U.S will continue to graduate approximately 15,000 to 20,000 physicians MDs every year. As a result, it has been projected that around 4,000 physicians would increase in future annually. The factors affecting supply of the physicians depends on the retirement age of the physicians, number of medical schools, enrollment ratios in medical colleges, facilities available to these new leaners, infrastructure provided to these students and upcoming physicians. Most of the physicians leave the workforce due to morality, disability, and may be change in their career line too. It would definitely have an impact on the supply quantities of them. It has been found that there will be less likelihood of the physician to leave the workforce before their retirement age. It has been found that the retirement patterns have changed and the age of retirement have been extended according to the economic environment. It is now 75 years of age. It will increase the amount of quantity supplied in the physicians market. Moreover, there is different analysis for male and female physicians. Although, male physicians retire at the age of 75, it has been found that the female physicians retire a bit earlier than the male ones. The