Earlier quoted context omitted.
> It reaches a new balance point with more doctors than before. But you just pull this "more doctors than before" out of your ass. There is no such assurance. If less people want to become doctors, then eventually there will be less doctors, not more.
I didn't pull it out of my ass. It's basic logic that if you remove a supply restriction then the supply goes up. Let's attach fake numbers: Right now only 50 people can get residency each year, and 80 people starting college each year want to be doctors and would work hard enough. If you let everyone get residency, at first you'd make 80 doctors per year. This would decrease doctor pay and then only 75 people would…
There is no reason why it would bounce back at 50. What if it bounce back at around 20 and settle around 30? Then you have less doctors than before...