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) Both supply and demand shift to the right.
B) Both supply and demand shift to the left.
C) Supply shifts to the right, and demand shifts to the left.
D) Supply shifts to the left, and demand shifts to the right.
E) none of the above

Question

Quizplus · Accepted Answer

The BBP regulation increases the cost of providing dental care, which shifts the supply curve to the left. It also reduces the fear of contracting diseases, which increases demand, shifting the demand curve to the right.

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