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?

Question

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?

Quizplus · Accepted Answer

Outsourcing reduces demand for domestic radiologists, while fewer graduates reduce supply. The quantity falls, but the wage effect is uncertain due to opposing demand and supply shifts.

Suppose the Following Two Events Occur in the Domestic Market