Question

Please explain how the following factors are going to cause the suplly of radiological services to changes:

a. Advancements in technology

b. Increase in teh price of inputs

c. decrease in the number of radiological practices in the region.

Answer 1

a) Advancement in the technological fields will increase the effectiveness of the services provided. IT will make the supply fo those cheaper and the quantity supplied will increase. Technological changes will shift the supply curve to the right at a higher quantity and lower price.

b) Increased input will increase the price of the goods. As the firm will spend more to produce the same good they will increase the price of that good to maintain their profitability. But, at a higher price, the demand will be low. This will shift the supply curve to the left. At a higher price and lower quantity.

c) A decrease in the number of services provider will decrease the total supply in the market. With a constant demand, the price of the good will increase as the quantity supplied has gone down. This will also shift the supply curve to the left i.e. at a higher price and lower quantity.