Scenario 2.2:
In 1992, the Occupational Safety and Health Authority passed the Bloodborne Pathogens Standard (BBP), which regulates dental office procedures. This regulation is designed to minimize the transmission of infectious disease from patient to dental worker. The effect of this regulation was both to increase the cost of providing dental care and to ease the fear of going to the dentist as the risk of contracting an infectious disease.
-Refer to Scenario 2.2. What is the effect of the BBP on the market for dental care?
A) Only the supply curve shifts.
B) Only the demand curve shifts.
C) Both the demand and supply curves shift.
D) Neither the demand nor supply curve shifts.

Question

Quizplus · Accepted Answer

The BBP regulation affects both the demand and supply of dental care. The increase in cost due to compliance with the regulation shifts the supply curve to the left, reducing the quantity supplied at any given price. On the other hand, the regulation eases people's fear of contracting an infectious disease and increases the demand for dental care. This shifts the demand curve to the right, increasing the quantity demanded at any given price. Therefore, both the demand and supply curves shift.

Scenario 2.2: in 1992, the Occupational Safety and Health Authority Passed the Passed