Suppose the California Nurses Union Successfully Secured a 12 Percent

question 191

Multiple Choice

Suppose the California Nurses Union successfully secured a 12 percent increase in the wages of registered nurses.If a hospital responds by reducing the quantity of registered nurses hired and increasing the quantity of physician's assistants hired, what conclusion can you draw?

• A)Physician's assistants are more valuable in terms of their productivity.
• B)The price elasticity of demand for registered nurses is negative while the price elasticity of demand for physician's assistants is positive.
• C)The cross-price elasticity of demand between registered nurses and physician's assistants is positive.
• D)The cross-price elasticity of demand between registered nurses and physician's assistants is negative.

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