Suppose the Following Two Events Occur in the Domestic Market

question 166

Multiple Choice

Suppose the following two events occur in the domestic market for radiologists:
A.Some hospitals are outsourcing some radiology services such as reading x-rays.
B.Some medical schools have closed down their radiology departments as fewer students enroll in this field.
What is likely to happen to the equilibrium wage and quantity of radiologists following these two events?

• A)The equilibrium wage and the equilibrium quantity of radiologists rise.
• B)The equilibrium wage and the equilibrium quantity of radiologists fall.
• C)The equilibrium quantity falls and the effect on the equilibrium wage of radiologists is indeterminate.
• D)The equilibrium wage falls and the effect on equilibrium quantity of radiologists is indeterminate.

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Definitions:

Bankruptcy

A legal process for individuals or businesses that are unable to repay their outstanding debts, allowing them to eliminate or repay some or all of their debts under the protection of the bankruptcy court.

Credit

Credit refers to the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately but promises either to repay or return those resources (or other materials of equal value) at a later date.

RULLCA

The Revised Uniform Limited Liability Company Act, which provides a comprehensive legal framework for the formation, operation, and dissolution of LLCs in the jurisdictions that adopt it.

Automatic Dissolution

The process by which a legal entity, such as a company or partnership, is dissolved without the need for legal actions by its members or shareholders.