identify changes in market conditions and their effect on equilibrium price and

Question

identify changes in market conditions and their effect on equilibrium price and quantity for the following: 1. the wages for all dental assistants increase, increasing the costs of inputs. 2. the government provides national dental benefits for all U.S. citizens that cover 100% of the cost of all dental services. There are two effects of this policy. First, there will be an increase in the number of consumers of dental services. Second, there will be fewer dentists willing to provide dental services, resulting in some dentists removing themselves from the market entirely.

Explanation / Answer

1) Equal price goes up and shifts right while demand goes down and shifts leftwards. 2) Both go up.

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