Suppose the Following Two Events Occur in the Domestic Market

question 133

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 enrol 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:

Peer Influence

The impact that the behaviors, opinions, or attitudes of peers can have on an individual's own actions or beliefs.

Social Support

Refers to the psychological and material resources provided by a network of family, friends, colleagues, and others, which can enhance an individual's ability to cope with stress and hardships.

Cognitive Development Theory

A theory that outlines how human beings perceive, think, and understand their world through the interplay of genetic and learned factors.

Cultural Context

The various social, religious, economic, and cultural conditions that influence the life of an individual or community.