Refer to the figure that shows the market for U.S. health care. Other things equal, which of the following would shift the supply curve for medical care from S 2 to S 1 ?

image

A.   Significant cost-increasing medical technology.
B.  An aging population.
C.  Expansion of the Medicare program to include prescription drugs.
D.  Lower medical malpractice insurance premiums.

ANSWER:

A.   Significant cost-increasing medical technology.