Suppose the Following Two Events Occur in the Domestic Market

question 60

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:

Two-sided

Pertaining to tests or intervals in statistics that consider both directions or sides of a distribution, typically involving a range of values both above and below a certain point.

Population Mean

The average of a set of properties, characteristics, or values in a population.

Null Hypothesis

A statement in statistics that there is no significant difference or effect, used as a default assumption until evidence suggests otherwise.

Alternative Hypothesis

An assertion stating a significant difference or relationship exists in the context of statistical testing, contrary to the null hypothesis's claim of no effect.