Health Economics: Cosmetic Surgery?

[lathrop]

.What are the likely consequences of the following events in the U.S market for cosmetic surgery? Does the supply curve or the demand curve shift? In which direction? State whether the equilibrium price and quantity increase, decrease, or stay the same. Show the changes using a standard diagram with an upward-sloping supply curve and a downward-sloping demand curve.

a. Health insurance coverage is expanded to cover all elective procedures, such as tummy tucks, nose jobs, and liposuction.
b. The FDA (Food and Drug Administration) takes all silicone-based implants off the market fearing a connection with certain connective-tissue diseases.
c. Personal finance companies starts a nationwide lending program for cosmetic procedures not covered by health insurance.
d. Medical malpractice insurance premiums increase for plastic surgeons.
e. Medical schools announce that residents in plastic surgery can be licensed after only five years instead of the current seven years.