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.

---

Definitions:

Rationality

The quality of being based on or in accordance with reason or logic.

Quick Decisions

Choices or judgments made rapidly without extensive deliberation, often relying on intuition or immediate perception.

Framing

The way information is presented to the public, which can influence perception and understanding.

Issue

A point or matter of discussion, debate, or dispute, often requiring resolution or consideration.