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Government Payment of a Per-Unit Subsidy for Medical Care Causes

Question 330

Multiple Choice

Government payment of a per-unit subsidy for medical care causes


A) the market supply curve to shift upward.
B) the market demand curve to shift downward.
C) a reduction in the price that providers of medical care receive for each unit of care provided.
D) an increase in the quantity of medical care demanded above the quantity demanded in the absence of the subsidy.

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