If the real hourly wage paid to physicians increase, the real hourly wage paid to nurses will _______.
A) increase
B) decrease
C) stay the same
D) increase only if the number of physicians increases
E) none of the above

Question

Quizplus · Accepted Answer

The real hourly wage paid to nurses is likely to increase as well due to the complementarity of labor between physicians and nurses. If physicians are paid more, it could indicate a higher demand for medical services, which would also increase the demand (and thus wages) for nurses.

If the Real Hourly Wage Paid to Physicians Increase, the Real