AS Paper 1, June 2018Introduction to Markets and Market Failure
AS Paper 1, June 2018, Q3(a)
Using the data above, which one of the following is a function of the price mechanism in the market for private dental care?
Multiple choice1 mark
Context
In the UK charges for dental treatment vary. For example, the following charges can be made for a tooth filling: • National Health Service (NHS) dental treatment £50.50 • Private dental treatment £95–£700 A dentist can choose to offer NHS treatment, private treatment or both.
AActing as a signal to dentists when deciding whether to provide private dental treatment
BEliminating a shortage of private dentists by allowing the price of private treatment to fall
CEncouraging government intervention to set dental care targets
DIncentivising private dentists to offer only NHS treatment