Refer to the Article Summary. Assume that more foreign governments and hospitals begin to offer and publicize their medical services to American medical tourists and, due to the growing number of aging baby boomers, more Americans desire hip-
replacement surgery. All else equal, what will happen in the market for hip-replacement surgery as a result of these two factors?
A) Demand will increase, but these two factors will not shift the supply curve.
B) Demand and supply will both increase.
C) Demand will increase and supply will decrease.
D) Supply will increase, but these two factors will not shift the demand curve.
B
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Lenders generally want a higher interest rate to compensate them when loans stretch over a longer period because:
A. the opportunity cost increases over time. B. there's more uncertainty about potential future investment opportunities. C. lenders want to be compensated for being unable to get their money back quickly. D. All of these are true.
Unexpected and large deflation is desirable, according to the Friedman rule
a. True b. False Indicate whether the statement is true or false
Which of the following statements about a tariff and a quota is true?
A) With a tariff the government collects revenues, but not with a quota. B) With a quota the quantity of imports falls, but not with a tariff. C) With a tariff the domestic price of the good increases, but not with a quota. D) With a quota the domestic production of the good increases, but not with a tariff. E) all of the above
Suppose the growth rate of the firm's profit is 5 percent, the interest rate is 6 percent, and the current profits of the firm are $80 million. What is the value of the firm?
A. $1,413.3 million B. $89.2 million C. $8,480 million D. None of the statements associated with this question are correct.