[Related to Solved Problem 5.4 on page 169] In 2017,
an article in the Wall Street Journal discussed trends in the
health care sector. The article noted the “adoption of new
health information technology,” using “advanced algorithms and natural-language processing technologies
to read and reformat” data on patients. Assuming that
health information technology continues to advance,
use a graph of the market for medical services to show
the effect. Explain any shifts in the demand curve or supply curve and the effect on the equilibrium price and
quantity of medical services.
Sources: Jonathan D. Rockoff and Peter Loftus, “Facing Criticism, Drug Makers Keep Lid on Price Increases,” Wall Street Journal,
February 26, 2017; and Sara Castellanos, “A New Tool to Analyze
Medical Records,” Wall Street Journal, January 25, 2017.