As you learned last week, increasing the demand for Health Care in a market should increase its price. We expect that health professionals will respond to this higher price by increasing the amount of health care services that they offer to the market. However, their quantity supplied may increase too much at first, creating a surplus where before there was a shortage. (Equilibrium is not instantaneous.) What will happen to the price in the longer run if too much quantity is supplied at the new, initially higher price? In other words, how does the market clear a surplus? (one sentence)

• Question 1: How will price change if a surplus is created? (one sentence)

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In the longer run the surplus will ... View the full answer