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A growing number of U.S. citizens are going to other countries for elective surgery procedures. Improved quality and significant cost savings abroad have attracted an increasing number of what are being referred to as American medical tourists, especially those who either do not have insurance or whose insurance does not cover the desired procedure. As few as five years ago, Americans tended to travel to countries such as Thailand or Mexico for the procedures, but many are now choosing to go to Europe, where governments and hospitals are now publicizing these services. Many of the procedures being done overseas are joint replacement, and partly in response to the number of patients going abroad for these procedures, programs are being developed to reduce the cost of these surgeries in the United States.
Source: Elizabeth Rosenthal, “The Growing Popularity of Having Surgery Overseas,” New York Times, August 6, 2013.
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?
A. Supply will increase, but these two factors will not shift the demand curve.
B. Demand and supply will both increase.
C. Demand will increase and supply will decrease.
D. Demand will increase, but these two factors will not shift the supply curve.
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