2022 IB Diploma Extended Essays

Figure 3

Switzerland and Belgium

The diagram in figure 3 demonstrates the market for mammograms in Switzerland. At a free

market, supply and demand are operating at the socially optimum level of output within the

economy with the equilibrium point at A. The price at free market is at P e with the quantity

demanded and supplied at Q e . This represents the supply being able to meet the demands of

the consumer for mammograms within the economy. However, due to the opportunity cost

with the reallocation of resources, towards SARS-CoV-2 management within hospitals, the

supply for mammograms decreases – causing a shift in the supply curve from S 1 to S 2 , ceteris

paribus. Additionally, the reasoning for the leftward shift of the supply curve will also be

because hospital staff during this time will likely attract SAR-CoV-2. This now shifts the

price from P e to P 1 as the “production costs” for mammograms increase (Jocelyn Blink,

2020).. This increase in price also creates a decrease in the number of people willing and able

to get a mammogram screening as demonstrated by the leftward shift from Q e to Q 1 .

Although mammogram screenings are covered by insurance and have a cost of 0CHF for

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