Assume a competitive market for medical care. Use the supply and demand framework, where quantity of medical care is on the horizontal axis and price of medical care in on the vertical axis, to analyze the following situation. Suppose medical schools begin graduating more doctors into the medical workforce, what will happen to the equilibrium price and quantity of medical care?
The equilibrium price will rise and the equilibrium quantity will decrease.
The equilibrium price will rise and the equilibrium quantity will remain unchanged.
The equilibrium price will fall and the equilibrium quantity will remain unchanged.
The equilibrium price will fall and the equilibrium quantity will increase.