If there is an increase in the number of registered nurses and the demand for medical services remains unchanged, what should be expected to happen to the real hourly wage for registered nurses?
A) The real hourly wage should increase.
B) The real hourly wage should only increase if the demand for medical services is inelastic.
C) The real hourly wage should only decrease if the demand for medical services is elastic.
D) The real hourly wage should decrease.
E) The real hourly wage should only increase if the demand for medical services is elastic.

Question

Quizplus · Accepted Answer

An increase in the supply of registered nurses with unchanged demand for medical services means a surplus of nurses, which would lead to a downward pressure on wages. Therefore, the real hourly wage for registered nurses should decrease.

If There Is an Increase in the Number of Registered