Suggested solution: Like most markets, the demand curve for health care services shifts to the right when demand for the good or services increases. As the population of the United States increases, the demand for health care grows. In addition, increases in life expectancy lead to increased demand for health care. Increases in obesity and related conditions cause increased demand for health care. The Affordable Care Act has increased the proportion of the population with health insurance and has consequently increased use of the health care system.

Suggested solution: Health care is a very staff-intensive industry. Increases in the number of nurses allow an increase in the health care system’s output capability in spite of the relatively stable number of physicians. This is especially true with the growing number of nurse practitioners. Nurses with these skills can perform many of procedures previously performed by physicians.

Suggested solution: The ACA’s individual mandate requires all citizens to have health insurance. Some opponents of this requirement believe the benefits of health insurance do not outweigh the costs. They object to being forced to buy something they don’t want to purchase. Many opponents believe the mandate goes against efficient market principles. Supporters of the mandate believe everyone will eventually need services from the health care system and therefore all should contribute to the system. Because hospitals are required to provide emergency services regardless of ability to pay, those without health insurance can impose costs on the rest of society and become free riders. Supporters believe that to avoid the free rider problem, all should be required to have health insurance.