General versus targeted demand and supply subsidies
Show how an increase in the quantity of medical care consumed can be achieved through either a demand or supply subsidy. What are the advantages and disadvantages of general versus targeted demand and supply subsidies.
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Show how a raise in the quantity of medical care consumed can be achieved via either a demand or supply subsidy. What are the merits and demerits of general versus targeted demand and supply subsidies.
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If the price of medical care were set to zero for everyone, would individual demands for the medical care still differ? Under what conditions would you favor a "negative" price for the medical care?
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