demand

An interesting article appears in the November 2014 issue of The Journal of the American Dental Society by Marco Vujicic titled “The invisible hand and the market for dental care.” In the article the author opens by discussing Adam Smith’s invisible hand and that it is better than central planning and regulated prices. The author then discusses the supply and demand of dental services from 1993 to 2012. In the article, 3 distinct periods of dental care from 1993 to 2012 are described. The first period was from 1993 to 2002 when dental care was growing steadily at about 4% per year in real terms while the supply of dentists remained constant. In this period dental incomes increased. From 2002 to 2008, dental spending grew at about 2% per year while the supply of dentists remained roughly the same. In this … Read more