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. Under what circumstances will the equilibrium level of output of dental care remain the same?

Question

Quizplus · Accepted Answer

If both demand and supply shift by the same magnitude, the equilibrium level of output will remain the same. The increase in cost of providing dental care due to the BBP regulation would cause a decrease in supply (shift to the left), while the ease of fear of going to the dentist would cause an increase in demand (shift to the right). If both shifts are of the same magnitude, the equilibrium level of output will remain unchanged.

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