Accordingto Feldstein(2012), thedemand for the physician services is constant as it depends on thenumber of patients and clients in the market. Everyday people developmedical complications and seek the services of the doctors who assistin tackling the medical problems. The increase in the supply of thephysician services may lead to an increase in the demand for theservice due to raised health awareness. In many places, the cost ofobtaining medical services is relatively high which limits the numberof people who can afford the services. Hence, the demand for the sameservices is reduced due to the high prices. An increase in the supplyof the services would reduce the cost of obtaining them as theprofessionals compete for a market (Feldstein,2012).In the long-run, many individuals will be able to afford theseservices hence leading to increased demand.
Thephysicians would raise awareness among the people about varioushealth complications such that many people would go for medicalcheckups where there would be the effective screening of diseases(Feldstein,2012).Hence, the number of diagnosed patients would increase as healthissues would be identifiable even in the early stages of diseasedevelopment when the patients still think that they are healthy.
Onthe other hand, an oversupply of a certain commodity in the regularmarket may be attributed to low qualities of the products. Hence, theconsumers will shift their consumption to other goods with relativelyaverage levels of supply (Feldstein,2012).Oversupply may lead to low levels of demand because the workers wouldbe retrenched so that the production may match the market demand.Hence the capital for purchasing goods is reduced and with it theoverall demand.
Feldstein,P. J. (2012). Healthcare economics.Cengage Learning.