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Question
A distortion in the health care market can occur when the
a. existence of health insurance encourages consumers not to seek preventive care.
b. involvement of the government raises healthcare expenditures because doctors are guaranteed a payment that exceeds the market equilibrium price.
c. involvement of health maintenance organizations discourages efficiency in healthcare expenditures.
d. governments licensing of medical care providers reduces supply, which, in turn, increases the equilibrium price.
e. demand for health care is inelastic.
Answer
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Related questions
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