During peak flu seasons, there is not enough medical staff in public hospitals in Hong Kong.
(a) An economist stated, ‘Even if the government sharply increases the wage rates of the medical staff, it is still difficult to relieve the problem.’ Justify his statement using the concept of elasticity of supply / demand. (3 marks)
(b) In order to relieve the pressure of the medical staff, the government plans to recruit retired medical staff to re-join the public hospitals. Explain how the measure would affect the unemployment rate in Hong Kong. (4 marks)