a. Shock: A technological change occurs that reduces the cost of producing cancer tests. Market: Physician clinic services. Appearance of new high technologies is one of the non-price factors, which leads to decrease in production costs per unit of product, and hence to expand product supply. Technological change, in this case, tends to reduce the cost of physician clinic services. Demand will be not changed. However, we will see the increase in supply. The supply curve (S1) would be shifted to the right (S2). The price will become lower (P2) and the quantity will increase (Q2). b. Shock: Increased Continue reading...
