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Figure 15.3 Two Explanations for Why Health Care in the United States Is More Expensive Than in Europe. Supply and demand offers two possible explanations of high health-care costs in the United States: demand in the United States is high (a), or supply in the United States is limited (b). Example with supply and demand curve and determining consumer surplus, producer surplus. Chain effects of change in demand or supply due to an external shock. Understanding checkpoint (30 minutes) Go over an example together of what happens to market equilibrium with a shift in the demand curve. Consider the market for Airpods.