If more insurance companies decide to cover part of the price of elective laser eye surgery and more doctors decide to enter the field of laser eye surgery, what will happen in the market for laser eye surgery as a result of these two factors?

Question

Quizplus · Accepted Answer

With more insurance companies covering part of the price of elective laser eye surgery, the demand for this procedure will increase. On the other hand, with more doctors entering the field of laser eye surgery, the supply of this procedure will increase. Therefore, both demand and supply will increase, and prices may rise or fall depending on the magnitude of the shifts in demand and supply.

If More Insurance Companies Decide to Cover Part of the Price