Question

Which of the following changes will shift the demand curve for physician visits to the RIGHT on the usual price-quantity plain for the physician service market?

(a) Increase in the amount that physicians charge per visit.

(b) Greater incidence of Type 2 diabetes.

(c) Decrease in the price of chiropractic service. (Hint: Complement or substitute?)

(d) Wage increase for nurses.

(e) All of the above

Answer 1

Option b. greater incidence of Type 2 diabetes in the patients will force people to increase their visits to the physicians because of regular check ups and keep a track of their health status and thus the demand curve for physician's visits will shift rightwards.

Option a is incorrect because it cause a movement along the demand curve and not a shift of the demand curve. Option c is incorrect because ti will shift the demand curve leftwards because of decrease in the price of substitute good.Option d is incorrect because wage increases shiftd the supply curve and not the demand curve.

Thus. Option b is correct.