Consider the labor market for heath care workers. Because of the aging population in the United States, the output price for health care services has increased. Holding all else equal, the equilibrium quantity of health care employees would
a. The equilibrium wage decreases and the equilibrium quantity of labor increases.
b. The equilibrium wage increases and the equilibrium quantity of labor increases.
c. The equilibrium wage increases and the equilibrium quantity of labor decreases.
d. The equilibrium wage decreases and the equilibrium quantity of labor decreases.

An increase in the output prices will increase the profits of the health care providers. It will motivate them to increase the supply of health care. To increase supply they will need more healthcare workers. This will cause the labor demand to increase.

As a result, the labor demand curve will move to the right. This rightward shift in the labor demand curve will cause the equilibrium quantity of labor and equilibrium wages to increase.