THE ASSISGNMENT IS DONE- NEED MORE ADVICE ON \"MY RESPONSE\" POSTED BELOW. WHAT
ID: 1223595 • Letter: T
Question
THE ASSISGNMENT IS DONE- NEED MORE ADVICE ON "MY RESPONSE" POSTED BELOW. WHAT DO YOU THINK?
The purpose of this assessment is to help you understand the effects of demand and supply of products on the market.
Identify the changes in market conditions and the effect of these changes on equilibrium price and quantity for the given events. Share appropriate rationale to support your answers.
Event 1: The wages for all dental assistants increase with the increase in the costs of inputs.
Event 2: The government provides national dental insurance benefits for all U.S. citizens, which cover 100% of the cost of all dental services. There are two effects of this policy. First, there will be an increase in the number of consumers of dental services. Second, there will be fewer dentists willing to provide dental services, resulting in some dentists removing themselves from the market entirely.
SOMEONES ANSWER TO EVENT 1 & 2
**Event 1 < Due to the increase in wages for dental assistance. This will increase the price of dental work; as a result, a patient demand will decrease due to the prices being so high. Having high prices will have customers' go else-where.
**Event 2 < There will be a shift in the equilibrium. Increase in patient base due to no cost dental procedures and decrease of dentists' willing to provide services inside the network fees.
MY RESPONSE TO PERSON
Are you sure demand will decrease due to price increases? Or will demand stay the same, but quantity demanded decrease?
(PLEASE EXPLAIN WHAT YOU THINK AND BE DETAILED)
Explanation / Answer
From my perception,I would say I will go for second one.The demand will be same as before but as wages for all dental assistants increase with the increase in the costs of inputs.This will make the fee expensive for customers.So among them those can afford high cost can still go to those dentists.But those who can't bear the cost ,will go for another dentist to get low cost.
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