How would an increase in the wage rate that is paid to one of the labor factors (nurses), while holding the productivity levels constant impact the hiring practices for the nurses at an urban hospital?

What will the impact be if the wage rate in the above scenario was an increase in the union wage rate of wages of nurses?

You are an administrator of an urban hospital that also hires non-union laborers but not non-union nurses. The hospital is located in area of the community that many of the hospital’s patients are union employees at a local manufacturer. Your operating budget is fixed. How would you deal with the increase in wages for your nursing staff?