Question
Dentists and Orthodontists can both treat tooth decay, but only orthodontists perform oral surgery. Irrespective of the treatment, assume that the hourly rate for Dentists
Dentists and Orthodontists can both treat tooth decay, but only orthodontists perform oral surgery. Irrespective of the treatment, assume that the hourly rate for Dentists is always P(D) and for Orthodontists is always P(O). Recently, need for oral surgery has picked up. Concurrently, the cost of Orthodontist services falls. Which of the following best explains the market impact for Orthodontist treatment?
A) Both Price & Quantity Increase
B) Both Price & Quantity Decrease
C) Price Increase; Quantity Impact Is Unknown
D) Quantity Increase; Price Impact Is Unnkown
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