Gary Shapiro is the head of the Consumer Technology Association. In an opinion column in the...

 

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Gary Shapiro is the head of the Consumer Technology Association. In an opinion column in the Wall Street Journal, he argues that once people begin wearing micro-electrical-mechanical systems (MEMSS), the costs of providing health care will fall: "Without asking a single question, your doctor could chart your physical activity and check your hydration, sodium and oxygen levels without using a needle." Suppose that the devices also increase the demand for medical care by making it more likely that people will discover health problems. Source: Gary Shapiro, "Hacking Health Care: How Tech Will Drive Down Costs," Wall Street Journal, December 6, 2018. Use a graph of the market for medical services to show the potential effect of MEMSS becoming widely used, assuming that these systems are able to provide the benefits their supporters expect. Explain any shifts in the demand curve or supply curve and the effect on the equilibrium price and quantity of medical services. 1.) Using the line drawing tool, graph the effect of MEMSS becoming widely used by drawing a new supply curve and a new demand curve. Label your curves 'S₂' and 'D₂.' 2.) Using the point drawing tool, indicate the new market equilibrium. Label your point 'e₂.' Carefully follow the instructions above and only draw the required objects. Price (dollars per unit) P₁... e₁ Q₁ S₁ D₁ Quantity Gary Shapiro is the head of the Consumer Technology Association. In an opinion column in the Wall Street Journal, he argues that once people begin wearing micro-electrical-mechanical systems (MEMSS), the costs of providing health care will fall: "Without asking a single question, your doctor could chart your physical activity and check your hydration, sodium and oxygen levels without using a needle." Suppose that the devices also increase the demand for medical care by making it more likely that people will discover health problems. Source: Gary Shapiro, "Hacking Health Care: How Tech Will Drive Down Costs," Wall Street Journal, December 6, 2018. Use a graph of the market for medical services to show the potential effect of MEMSS becoming widely used, assuming that these systems are able to provide the benefits their supporters expect. Explain any shifts in the demand curve or supply curve and the effect on the equilibrium price and quantity of medical services. 1.) Using the line drawing tool, graph the effect of MEMSS becoming widely used by drawing a new supply curve and a new demand curve. Label your curves 'S₂' and 'D₂.' 2.) Using the point drawing tool, indicate the new market equilibrium. Label your point 'e₂.' Carefully follow the instructions above and only draw the required objects. Price (dollars per unit) P₁... e₁ Q₁ S₁ D₁ Quantity

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