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 bean 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.
Based on your responses in the discussion vis-à-vis your peers’ responses, discuss:
1. How confident do you feel in yourself to identify the changes in market conditions and their effect on equilibrium price and quantity for similar events on a scale of 5? 5 means fully confident, 1 means not confident at all.
2. Based on your performance in the discussion, what are the areas where you think you need more guidance?
3. What resource(s) other than the textbook will you use to strengthen your improvement areas?