What would happen in the market for laser eye surgery if insurance companies 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 insurance companies cover a portion of the price of laser eye surgery, it will reduce the out-of-pocket expenses for patients and make the procedure more affordable. This will likely increase the demand for the surgery. However, it is unlikely to affect the supply of laser eye surgery providers in the market. Therefore, the demand curve will shift rightward, leading to an increase in quantity demanded and equilibrium price without affecting the supply curve.

What Would Happen in the Market for Laser Eye Surgery