Scientific Evidence Suggests That Nurse Practitioners (NPs) and Physician Assistants

Scientific evidence suggests that nurse practitioners (NPs) and physician assistants (PAs) can be considered as substitutes in providing many types of medical care. When hospitals take hiring decisions, the "price" (i.e. salaries) they have to pay for a new NP versus a new PA is one of the deciding factors. If PAs' salaries have grown substantially during the last 6 months, while there has been no change in the NPs' salaries, what would happen in the market for nurse practitioners' services?

A) Supply of NPs to hospitals will increase.
B) Supply of NPs to hospitals will decrease.
C) Hospitals' demand for NPs will increase.
D) Hospitals' demand for NPs will decrease.
E) The increase in the salaries of PAs should have no effect on hospitals' demand for or supply of nurse practitioners' services.

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