UNIVERSITY OF VETERINARY MEDICINE AND PHARMACY IN KOŠICE · UVLF Košice
Veterinary and Farm Management
Chapter 2: Demand and Supply of Veterinary Services
Lecturer: Ing. Klaudia Ihnačáková · Course: Veterinary and Farm Management · klaudia.ihnacakova@uvlf.sk
Lesson Plan · 120 Minutes
1Welcome and what we will learn5 min
2Demand for vet services: what it is, and what changes it25 min
3Supply of vet services: what it is, and what changes it20 min
4When demand meets supply: balance, shortage, surplus, and how much price matters25 min
514 real-life examples, worked through together25 min
6Final test (15 questions) and grading20 min
Introduction
By the end of this class, you will be able to:
Explain, in simple words, what demand and supply mean.
List the things that make people want more or less veterinary care, and the things that make vets offer more or less of it.
Explain what happens when demand and supply meet — and what happens when they don't.
Say whether a service is "must-have" (people pay almost any price) or "can-wait" (people care a lot about price) — and explain why.
Explain what makes the veterinary market a bit different from an ordinary shop.
WHY THIS MATTERS
Every clinic and every farm works inside a market. If you understand what makes people want more or less care, you can set fair prices, plan ahead, and run a stronger practice — whether it is a small rural clinic or a large farm business.
First, in short: the basic ideas
Before we go deep, let's recall the classic economic rules we will use throughout this lecture. We will then unpack each one in more detail, show it on a graph, and connect it right away to a concrete example from veterinary practice.
Idea
Classic rule
Demand
The amount buyers are willing and able to buy at a given price.
Law of demand
Price up → quantity down. Price down → quantity up. (an inverse relationship)
Supply
The amount sellers are willing and able to sell at a given price.
Law of supply
Price up → quantity up. Price down → quantity down. (a direct relationship)
Balance (equilibrium)
The point where demand exactly equals supply (Qd = Qs).
Shortage
Price is below balance → demand is greater than supply.
Surplus
Price is above balance → supply is greater than demand.
Elasticity of demand
How much the quantity bought changes when the price changes.
HOW WE'LL GO THROUGH IT
These rules hold in every market — including the market for veterinary services. Let's now look more closely at the first idea: demand.
DEMAND
What Is Demand?
"Demand is simply how many vet visits people want to buy, at a certain price, in a certain period of time."
The rule of demand is simple: when the price goes up, people buy less. When the price goes down, people buy more. On a graph, this is why the demand line slopes downward, from top-left to bottom-right.
Simple example: A clinic charges 10 € for a cat vaccination. At this price, 50 owners come. The clinic raises the price to 25 € — some owners think twice or wait, so only 20 owners now come. Nothing else changed, only the price — and that is exactly the law of demand in action.
FIGURE 1 · The demand line — what happens when only the price changes
A price change alone does not draw a new line — it just moves you to a different point on the same line. Lower price, more visits. Higher price, fewer visits bought.
If only the price changes, you move along the same line. If something else changes — income, taste, the price of a related product — the whole line moves. That is called a shift, shown next.
What Makes People Want More or Less Vet Care?
Income
When people or farms earn more money, they are more willing to pay for check-ups, surgery, and prevention.
For example: after a good harvest, a farmer books more preventive herd check-ups.
EFFECT More demand
Price of Related Things
A cheaper home remedy pulls demand away from the vet. Cheaper pet insurance pulls demand toward the vet.
For example: when an over-the-counter flea product gets cheaper, fewer people pay a vet for a flea consultation.
EFFECT Can go either way
Number of Buyers
More pet-owning families, or a bigger herd of farm animals in the area, means more people wanting care.
For example: many pet-owning families move into town — demand for vet care in the area rises.
EFFECT More demand
Feelings & Awareness
A stronger bond with a pet, more health awareness, or worry about a disease all make people seek care sooner.
For example: a new animal disease appears nearby, so more owners come in for a check-up even at a higher price.
EFFECT More demand
DEMAND IS BIGGER WHEN...
Owners or farmers earn more — for example, after a good harvest.
More pets or farm animals appear in the area.
A related product gets cheaper, such as pet insurance.
A disease breaks out, or awareness of animal health grows.
More people get a pet — for example, during a rise in working from home.
DEMAND IS SMALLER WHEN...
Owners or farmers earn less — for example, after a drought or a poor harvest.
A substitute gets cheaper, such as an over-the-counter flea product.
There are fewer animals or owners in the area — for example, families move away.
A related product gets more expensive, such as pet insurance.
Interest in or trust in animal care falls.
FIGURE 2 · A shift in demand — what happens when something other than price changes
When more people want care at every price — say, because incomes rose or a disease scare hit — the whole line moves to the right (D1 → D2). If the opposite happens, the line moves to the left instead.
SUPPLY
What Is Supply?
"Supply is how many vet visits providers want to sell, at a certain price, in a certain period of time."
The rule of supply is the mirror image of demand: when the price goes up, vets are willing to offer more care — extra hours, extra staff. When the price goes down, they offer less. That is why the supply line slopes upward, from bottom-left to top-right.
Simple example: At a price of 20 € per exam, a vet manages 10 exams a day. When the price rises to 35 €, it is worth hiring an assistant and doing 15 exams a day. Nothing else changed, only the price — and that is exactly the law of supply in action.
FIGURE 3 · The supply line — what happens when only the price changes
Again, a price change alone just moves you along the same line: a higher price makes vets willing to offer more visits.
What Makes Vets Offer More or Less Care?
Costs
Drugs, equipment, rent, and staff wages. When these go up, vets can afford to offer less at the same price.
For example: an imported drug gets more expensive, so the vet has to limit how many exams the old price can cover.
EFFECT Less supply
Number of Vets
More licensed vets and clinics in an area means more care is offered overall.
For example: a second clinic opens in town — together they can treat more animals than before.
EFFECT More supply
Technology
Better equipment or online consultations let one vet treat more animals for the same cost.
For example: an online consultation lets a vet advise more clients in a day than seeing each one in person.
EFFECT More supply
Rules & Licences
Stricter licence rules or more required training make it harder for new vets to start working.
For example: when required training gets longer, fewer new vets can get licensed that year.
EFFECT Less supply
SUPPLY IS BIGGER WHEN...
Costs fall — for example, drugs or rent get cheaper.
More vets or clinics open in the region.
Technology improves — for example, online consultations or better equipment.
Rules or licence requirements for entering the profession ease up.
The government gives a subsidy that lowers vets' costs.
SUPPLY IS SMALLER WHEN...
Costs rise — for example, drugs or diagnostic equipment get more expensive.
A vet leaves (for example, retires) and nobody replaces them.
Rules or licence requirements get stricter.
Deliveries of drugs or key equipment are disrupted.
A clinic has to limit its operations — for example, after damage to the building.
FIGURE 4 · A shift in supply — what happens when something other than price changes
When vets are willing to offer more care at every price — say, because a new clinic opened or costs fell — the whole line moves to the right (S1 → S2). Higher costs or stricter rules would push the line to the left instead.
BALANCE
When Demand Meets Supply
Put the two lines on the same graph, and they cross at one point. This crossing point is called balance (equilibrium): the price where buyers want to buy exactly as much as sellers want to sell. Away from that point, the market is out of balance.
Simple example: In a small town, at a price of 30 € per exam, exactly 40 owners want to come, and vets are willing to do exactly 40 exams. That is balance — nobody waits, and nobody is left without work.
If the price fell to 20 €, 60 owners would want an exam, but vets would only be willing to do 25 — a shortage appears.
If the price rose to 45 €, only 15 owners would want an exam, but vets would want to do 55 — a surplus appears.
FIGURE 5 · Balance, shortage, and surplus
If the price sits above the balance point, sellers offer more than buyers want — a surplus, so prices tend to fall. If the price sits below the balance point, buyers want more than sellers offer — a shortage, so prices tend to rise.
Situation
What is happening
What usually happens next
Shortage
Price is too low — buyers want more than sellers offer
Owners compete for appointments; the price tends to rise, or people wait longer
Surplus
Price is too high — sellers offer more than buyers want
Clinics compete for clients; the price tends to fall, or clinics offer discounts
Balance
Buyers and sellers want the same amount
No pressure to change the price
HOW MUCH PRICE MATTERS
Not All Vet Services Are the Same
Imagine being thirsty in the desert: when someone offers you water, you pay almost any price, because you have no choice. That is price-insensitive (inelastic) demand. Now imagine you want your favourite flavour of gum, and it happens to be pricier than usual — you simply reach for another flavour instead. That is price-sensitive (elastic) demand. The same idea applies in veterinary practice:
Service
Does price matter much?
Why
Emergency, life-saving surgery
No — people pay almost anything
No time to shop around, and no real substitute
Routine vaccination / herd health
A little
Usually needed, but owners can sometimes wait
Optional care (grooming, teeth-cleaning)
Yes — price matters a lot
Easy to skip or delay if it feels too expensive
WHAT MAKES THIS MARKET DIFFERENT
Special Things About the Vet Market
DEMAND THAT COMES FROM SOMETHING ELSE
Farmers do not want vet care for its own sake — they want healthy animals that produce meat and milk.
So when meat or milk prices fall, farmers also spend less on non-urgent vet care.
For example: when the milk purchase price falls, a farmer books fewer voluntary herd check-ups.
THE OWNER KNOWS LESS THAN THE VET
Most owners cannot judge exactly what treatment is needed — they trust the vet's opinion.
This is why trust and honesty matter so much in this profession.
For example: when a vet says a dog needs surgery, the owner usually trusts them, since they cannot judge how serious it is themselves.
YOU NEED A LICENCE TO WORK
A vet must register with the Veterinary Chamber before treating animals.
This protects quality, but it also means supply cannot grow overnight.
For example: even an experienced animal breeder cannot legally treat animals without a veterinary licence, even if they know how.
TOWN AND COUNTRY ARE DIFFERENT
Rural areas often have far fewer vets per farm than cities have vets per pet.
So a shortage can exist in one place even while the market looks fine overall.
For example: a city may have several vets within a few kilometres, while a rural farmer sometimes has to drive an hour to reach a large-animal vet.
Key Points to Remember
Demand goes up when income rises, when more people own pets or animals, or when people care more about health. Supply goes up when costs fall, when more vets are working, or when technology improves. The two meet at one balance point — move away from it, and you get either a shortage or a surplus. Some services (emergencies) sell at almost any price; others (grooming) only sell if the price feels fair. And because farm vet care depends on the value of meat and milk, the whole market reacts to farm prices too.
Putting it all together: Picture a village clinic. If many new animal owners move into the area (more buyers) and milk prices rise at the same time (higher farm income), demand shifts to the right. If the clinic also buys new equipment (better technology), supply shifts to the right too. Wherever the two new lines cross is the new balance price and the new number of exams — and this is exactly what happens in every real market, the veterinary one included.
14 Real-Life Examples
Read each short story. Think it through before you click. Then check the answer and the graph, which shows exactly what is happening to the line.
DEMAND1 / 14More Dogs, More Vet Visits›
Story: More people start working from home and many of them get a dog. Now more owners want check-ups, even at the same price as before. What happens to demand?
WHY
Many new dog owners have appeared. Nothing got cheaper — there are simply more people on the market who want this service, at any price. So the whole line moves, not just one point on it.
ANSWER
The demand line moves to the right. More visits are wanted at every price.
Demand shifts right (D1 → D2): more buyers at every price.
DEMAND2 / 14A More Expensive Vaccination›
Story: A clinic raises the price of a vaccination from 20 € to 35 €. Fewer owners book it. Has the demand line moved, or something else?
WHY
Only the price changed, nothing else. And that is exactly what the basic rule says: when something gets more expensive, people buy less of it. We stay on the same line — we just moved along it.
ANSWER
This is just a move along the same demand line — fewer visits at the higher price.
A move along the same demand line — no shift.
DEMAND3 / 14A Cheap Alternative›
Story: A cheap over-the-counter flea treatment appears in shops. Fewer owners now pay a vet for a flea check-up. Why?
WHY
A cheaper alternative has appeared in shops. Some people now prefer to buy it instead of visiting the vet — and that holds true whatever the vet's price is. So the whole line moves to the left.
ANSWER
Demand for the vet's flea service falls — the line moves left.
Demand shifts left (D1 → D0): fewer buyers at every price.
DEMAND4 / 14Cheaper Pet Insurance›
Story: Pet insurance becomes cheaper and easier to get, so owners pay less out of their own pocket for a vet visit. What happens to demand for vet visits?
WHY
When insurance is cheaper, the owner actually pays less for the visit, even though the clinic's own price stayed the same. So more people now want to come in — the whole line moves to the right.
ANSWER
Demand for vet visits rises — the line moves right.
Demand shifts right (D1 → D2).
DEMAND5 / 14A Good Harvest›
Story: After a very good harvest, a farmer earns more money and books more preventive check-ups for his herd than before. Why?
WHY
When a farmer has more money, he can afford more care for his animals. The price did not change — the money in his pocket did — and that pushes the whole line to the right.
ANSWER
Higher income shifts the farmer's demand line to the right.
Demand shifts right — the farmer's income rose.
SUPPLY6 / 14A New Clinic Opens›
Story: A small town gets a second veterinary clinic. What happens to the total supply of vet care in that town?
WHY
The town now has one extra vet. Together they can treat more animals than before, at any price. So the whole line moves to the right.
ANSWER
The supply line moves to the right.
Supply shifts right (S1 → S2): more providers at every price.
SUPPLY7 / 14Rising Equipment Costs›
Story: The price of imported drugs and equipment jumps sharply. How does this affect the supply of vet care?
WHY
When drugs and equipment get more expensive, it is worth the vet's while to do less work for the same price as before. So the whole line moves to the left.
ANSWER
The supply line moves to the left — less is offered at every price.
Supply shifts left (S1 → S0): fewer providers at every price.
SUPPLY8 / 14Farmers Pay More for Vaccination›
Story: Farmers become willing to pay more for herd vaccination, and a vet responds by opening more appointment slots. Is this a shift, or something else?
WHY
Only the price the farmers are willing to pay changed. The vet simply responds to that by doing more work. We stay on the same line.
ANSWER
This is just a move along the same supply line, not a shift.
A move along the same supply line — no shift.
SUPPLY9 / 14Stricter Licence Rules›
Story: New rules make it more expensive and time-consuming to become a licensed vet. What happens to supply in the short run?
WHY
When it is harder to become a vet, fewer new people enter the job. There are temporarily fewer vets on the market — and so less supply at any price.
ANSWER
Supply falls in the short run — the line moves left.
Supply shifts left (S1 → S0).
BALANCE10 / 14Too Few Vets for the Herd›
Story: A rural area has only one large-animal vet, but many farms want appointments at the current price. What is this, and what might happen?
WHY
There is only one vet in the area, but farms want far more appointments than he can manage. More people want it than can be offered — and that is exactly a shortage.
ANSWER
This is a shortage. The price may rise, or the government may help fund a new rural practice.
Price below the balance point → a shortage.
BALANCE11 / 14Too Many Clinics in the City›
Story: In a big city, several clinics compete for the same pet owners. At the current price, more appointment slots are open than are booked. What is this called?
WHY
The city has many clinics, and they all have open slots nobody is taking. More is being offered than is actually bought — and that is exactly a surplus.
ANSWER
This is a surplus. Clinics tend to lower prices or run promotions to attract clients.
Price above the balance point → a surplus.
PRICE SENSITIVITY12 / 14A Bleeding Dog›
Story: A dog is hit by a car and needs surgery right now. The owner has no time to compare prices. What does this tell us?
WHY
When it is about saving a life, the owner is not thinking about price — they simply pay. They have no other option and no time to think it over. So price barely affects how many of these surgeries take place.
ANSWER
Demand for emergency, life-saving surgery is very price-insensitive.
A near-vertical line: quantity barely changes even if price jumps.
Story: A clinic raises the price of an optional teeth-cleaning service by 30%. Many owners simply wait. What does this tell us?
WHY
Teeth-cleaning is not a must. When it gets pricier, the owner simply puts it off. So a small price change causes a big change in how many people buy it.
ANSWER
Demand for optional services is quite price-sensitive.
A near-flat line: a small price change strongly changes the quantity.
SPECIAL FEATURES14 / 14A Disease Outbreak and State Help›
Story: Bird flu breaks out. The state now requires poultry testing, and pays part of the vets' cost to do it. How does this affect the market?
WHY
Two things happen here at once. First, owners must get their animals tested whether they like it or not — that raises demand. Second, the state pays part of the vets' cost, so they can offer more at the same price — that raises supply. Both lines move right, but for completely different reasons.
ANSWER
Both lines move to the right together — demand because testing is now required, and supply because the subsidy lowers the vets' costs.
The mandate raises demand, the subsidy raises supply — both at once.
Test Your Knowledge: Chapter 2
5True / False questions
5Multiple-choice — ideas
5Multiple-choice — real situations
Answer all 15 questions yourself first. Each is worth 10 points (150 points total). Write T or F for True/False, or pick one letter (A–D) for multiple-choice. About 15 minutes. Click a question to check your answer together with the graph.
PART A · TRUE OR FALSE (QUESTIONS 1–5)
1. When the price goes up, people buy more of a service, not less.
Show answer
FALSE — it is the opposite. A higher price means people buy less.
The correct relationship: a move along the demand line, not a shift.
2. When pet owners earn more money, they usually buy more vet care, because pet care is a normal good.
Show answer
TRUE — higher income moves the demand line to the right.
Demand shifts right.
3. A shortage happens when the price is too high.
Show answer
FALSE — that describes a surplus. A shortage happens when the price is too low.
A high price creates a surplus, not a shortage.
4. Emergency vet care is something owners buy no matter the price, because there is no time to shop around.
Show answer
TRUE — urgency and no substitutes make price matter very little.
A near-vertical demand line.
5. A price change moves the whole demand line to a new position.
Show answer
FALSE — a price change just moves you along the same line.
Just a move along the line — no shift.
PART B · MULTIPLE CHOICE — IDEAS (QUESTIONS 6–10)
6. Which of these would push the supply line to the left?
A. Cheaper vet drugs
B. New vets joining the profession
C. More expensive diagnostic equipment
D. Better technology
Show answer
Correct: C. Higher costs mean vets can offer less at the same price.
Supply shifts left.
7. What do we call demand for farm vet care, that really comes from the demand for meat and milk?
A. Price-sensitive demand
B. Demand that comes from something else
C. Total demand
D. Joint supply
Show answer
Correct: B (economists call this "derived demand").
Rising meat and milk prices push demand for vet care to the right.
8. The market is in balance when:
A. Sellers offer more than buyers want
B. Buyers want more than sellers offer
C. Buyers want exactly as much as sellers offer
D. The price is zero
Show answer
Correct: C. That is the definition of balance (equilibrium).
Point E: demand exactly equals supply.
9. Which of these affects demand, not supply?
A. The cost of vet drugs
B. The number of licensed vets
C. Pet owners' income
D. Licence rules for vets
Show answer
Correct: C. Income affects how much buyers want, not how much vets offer.
Higher income only moves the demand line.
10. Asymmetric information in the vet market means:
A. Vets charge different prices at different clinics
B. The owner cannot fully judge what treatment is really needed
C. Farms are bigger than clinics
D. Two vets disagree on a diagnosis
Show answer
Correct: B. The owner has to trust the vet, because they cannot judge for themselves what their animal actually needs. This has nothing to do with a shift of the line — it is simply about trust between owner and vet.
PART C · MULTIPLE CHOICE — REAL SITUATIONS (QUESTIONS 11–15)
11. A rural clinic raises the price of a vaccination from 15 € to 25 €. What happens?
A. The demand line moves left
B. Fewer visits are bought, moving along the same demand line
C. The supply line moves right
D. The balance price falls
Show answer
Correct: B. Only the price changed, so this is a move along the line.
A move along the demand line.
12. A bad drought sharply cuts farmers' income. What happens to demand for non-urgent check-ups?
A. Demand rises
B. Demand falls
C. Nothing changes
D. Supply falls
Show answer
Correct: B. Lower income means less demand for care that is not urgent.
Demand shifts left.
13. The government pays part of the cost for vets working in remote areas. What happens to the supply line there?
A. It moves right — more care is offered at every price
B. It moves left
C. The demand line moves right
D. Nothing changes
Show answer
Correct: A. Lower costs make vets willing to offer more.
Supply shifts right.
14. Many more owners want appointments than the town's vets have time for, at the going price. What is this?
A. A surplus
B. A shortage
C. Very price-sensitive supply
D. A price ceiling
Show answer
Correct: B. Buyers want more than sellers can offer at this price.
Price below the balance point → a shortage.
15. Which service is bought no matter the price?
A. Optional teeth-cleaning
B. Cosmetic grooming
C. Emergency, life-saving surgery
D. An optional training class
Show answer
Correct: C. No substitutes and no time to wait make price almost irrelevant.
A near-vertical demand line.
SCORING & GRADING SCALE
Each of the 15 questions is worth 10 points (150 points total). Turn the score into a percentage: score ÷ 150 × 100. Then use the scale below.
A
B
C
D
E
FX
100–91%
90–81%
80–71%
70–61%
60–51%
below 51%
FX = Fail: a score below 51% (fewer than 77 of 150 points) means the test must be repeated.
TEST 2 · ANSWER KEY INCLUDED
Test 2: Chapter 2 (Exam Paper)
5True / False questions
5Multiple-choice — ideas
5Multiple-choice — real situations
This is a second, separate test on the same topics, meant to be printed as a real exam paper. Same format: 15 questions, 10 points each, 150 points total. The answer key with graphs follows. About 15 minutes.
TEST 2 · PART A · TRUE OR FALSE (QUESTIONS 1–5)
1. When the price of a service goes up, vets become willing to offer more of it.
2. Cheaper, more common pet insurance tends to lower demand for vet visits.
3. A surplus happens when sellers offer more than buyers want, at the current price.
4. Routine check-ups are just as price-insensitive as emergency surgery.
5. Farm vet demand comes only from how much owners personally love their animals, not from meat or milk prices.
TEST 2 · PART B · MULTIPLE CHOICE — IDEAS (QUESTIONS 6–10)
6. Which of these would push the demand line to the right?
A. Higher income for pet owners
B. Higher vet prices
C. Stricter licence rules for vets
D. More expensive vet drugs
7. The number of licensed vets in a region affects:
A. Demand
B. Supply
C. Price sensitivity only
D. Nothing important
8. If buyers want more than sellers offer at the current price, the market has a:
A. Surplus
B. Shortage
C. Balance
D. Subsidy
9. A cheaper over-the-counter flea product is an example of:
A. Higher wages for vet staff
B. A substitute that lowers demand for the vet's service
C. New veterinary equipment
D. A new clinic opening nearby
10. The idea that owners must trust the vet's judgment, because they cannot fully judge it themselves, is called:
A. Price sensitivity
B. The owner knowing less than the vet
C. Demand that comes from something else
D. Market balance
TEST 2 · PART C · MULTIPLE CHOICE — REAL SITUATIONS (QUESTIONS 11–15)
11. Many new clinics open in a city at once, all competing for the same pet owners. More appointments are offered than booked. This is:
A. A shortage
B. A surplus
C. A rise in demand
D. A price floor
12. A rural area's only large-animal vet retires, and nobody replaces her. What happens to supply there?
A. It rises
B. It falls
C. It stays the same; only the price changes
D. Demand falls
13. A milk-price boom raises farmers' income and their expectations for next year. What happens to demand for herd health care?
A. It falls
B. It rises
C. Supply falls
D. Nothing changes
14. A clinic drops the price of a wellness exam from 40 € to 25 €, and bookings rise sharply. This is best described as:
A. A shift of the demand line
B. A move along the demand line
C. A shift of the supply line
D. A change in income
15. Which best shows that price barely matters to the buyer?
A. Switching clinics for a cheaper nail trim
B. Delaying a grooming appointment when it gets pricier
C. Paying whatever it costs to save a pet in an emergency
D. Comparing prices before booking a wellness check
TEST 2 · ANSWER KEY
Show the full Test 2 answer key
Part A
1. TRUE — a higher price makes it worthwhile to offer more.
A move along the supply line.
2. FALSE — cheaper insurance lowers the owner's real cost, so demand rises.
Demand shifts right.
3. TRUE — that is exactly what a surplus is.
Price above the balance point.
4. FALSE — routine check-ups are more price-sensitive.
Steep (insensitive) vs. flat (sensitive) line.
5. FALSE — farm vet demand also comes from the value of meat and milk.
Derived demand: the meat and milk market drives demand for vet care.
Part B
6. A — higher income moves demand right.
7. B — the number of vets is a supply-side factor.
8. B — buyers wanting more than sellers offer is a shortage.
9. B — a cheaper substitute pulls demand away from the vet.
10. B — the owner has to trust the vet, since they cannot judge what is really needed themselves.
Part C
11. B — more offered than booked at the current price is a surplus.
12. B — one fewer vet means less is offered at every price.
13. B — higher farm income raises demand for herd health care.
14. B — only the price changed, so this is a move along the demand line.
15. C — no substitutes and no time to wait make price barely matter.
Use the same A–FX grading scale shown above for Test 1.