The federal government has passed a number of medical-practice regulations:

first, medical records must now be kept in special cabinets in locked rooms to protect the privacy of patients; second, electronic medical records systems must be used.

a) Show how the market supply curve for knee surgery is affected by the new regulations.

b) Suppose the amount that each orthopedic surgeon is reimbursed for knee procedures from insurance companies remains unchanged. Can you predict what will happen to the number of procedures each surgeon will perform under the new regulations?