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Mathematics, 02.04.2021 03:30 aylinkayla
The market equilibrium price for a physician’s visit is $80, in a market where there is no health insurance. To encourage more people to get more routine checkups, the local government mandates that the price of a doctor’s visit cannot be more than $60. Answer all of the following questions:
Is this a price floor or a price ceiling?
Draw a graph to illustrate the implementation of this government policy.
What happens to the number of doctor visits in this market? Show this in the graph.
How does this policy affect the social welfare of the economic agents involved? Illustrate your answer graphically.
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The market equilibrium price for a physician’s visit is $80, in a market where there is no health in...
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