Question: In the medical field, general practitioners generally receive lower salaries than surgeons. Suppose the government passes a law that requires hospitals to pay general practitioners the same salaries as surgeons. Explain the effect of this law and show your answer with demand and supply graphs for the following two situations:
A) Hospitals set salaries at a level between two existing salaries
B) Hospitals set general practitioners' salaries at the initial level of surgeons' salaries