What would happen in the market for laser eye surgery if provincial health plans started to cover a portion of the price of voluntary procedures?
A)Demand will increase, but this will not shift the supply curve.
B)Supply will increase, but this will not shift the demand curve.
C)Demand and supply will both increase.
D)Demand will increase and supply will decrease.

Question

Quizplus · Accepted Answer

If provincial health plans started to cover a portion of the price of laser eye surgery, the cost to consumers would decrease, making the procedure more affordable. This would likely increase demand for the procedure, but it would not necessarily affect the supply of laser eye surgery. The amount of supply available will depend on the number of providers offering the procedure and their willingness to offer it at the reduced price. Therefore, option A is the correct answer.

What Would Happen in the Market for Laser Eye Surgery