Single Shift

NOT quantity demanded The original equilibrium price and quantity is P0 and Q0 respectively. The ageing State the determinant that caused the change! population puts pressure on emergency care and this change in population structure State your assumption(s)! is likely to increase the demand for healthcare services, ceteris paribus. The demand Analyse whether there is a shortage/surplus at the original equilibrium price. curve shifts rightward from D to D1. At price P0, quantity demanded is greater than quantity supplied. There is a shortage in healthcare services and this results in an State the pressure on price. upward pressure on price. Price of healthcare will continue to rise until it reaches the State how equilibrium price and quantity change. new equilibrium. Overall, equilibrium price of healthcare increases from P0 to P1 and equilibrium quantity increases from Q0 to Q1. **** Note: When there is a shortage, the upward pressure on price will cause producers to increase quantity supplied (movement along your SS curve - due the rise in price). SS curve does not shift!!!