Question

Refer to the Article Summary. If more European governments and hospitals begin to offer and publicize their services to American medical tourists and, due to the growing number of aging baby boomers, more Americans desire joint-replacement surgery, what will happen in the market for joint-replacement surgery as a result of these two factors?

Demand and supply will both increase.
Supply will increase, but these two factors will not shift the demand curve.
Demand will increase, but these two factors will not shift the supply curve.
Demand will increase and supply will decrease.

Answer 1

Demand will increase, but these two factors will not shift the supply curve.

Step-by-step explanation:

Both factors applies on the demand curve:

advertize will increase the demand

and the increase of people willing to do surgery increase demand.

An increase in supply will be new hospitals or more doctors capppable of do the surgery.