Multiple Choice
The Affordable Care Act is intended to reduce the price of health care.A decrease in the price of health care may
A) increase the number of doctors office visits if office visits are considered an inferior good and the substitution effect dominates the income effect.
B) decrease the number of doctors office visits if office visits are considered an inferior good and the substitution effect dominates the income effect.
C) increase the number of doctors office visits if office visits are a normal good.
D) Both A and C.
Correct Answer:
Verified
Correct Answer:
Verified
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