The Affordable Care Act Is Intended to Reduce the Price

question 10

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.

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Definitions:

University

An institution of higher education and research, which awards academic degrees in various disciplines and provides both undergraduate education and postgraduate education.

Foreign

Pertaining to or originating from a country other than one's own.

Origin

The point or place where something begins, arises, or is derived.

University

An institution of higher education and research which awards academic degrees in various disciplines.