As Governor, You Have Decided That Anyone Who Works but Earns

question 104

Multiple Choice

As governor, you have decided that anyone who works but earns less than $20,000 a year will have their health insurance premiums paid for by the government. How does this affect the equilibrium price and quantity of medical services?

• A) They are not affected.
• B) They have risen and demand has increased, but supply has remained constant.
• C) They have risen because supply and demand have decreased.
• D) They have fallen because demand has decreased and supply has held constant.
• E) Equilibrium price has fallen and quantity has risen because demand decreased and supply has remained constant.

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Definitions:

Reducing Anger

Strategies or techniques used to decrease feelings of anger and its physiological and psychological effects.

Elderly

People of advanced age, often considered to be those age 65 and over.

Busy Intersection

A crossroad or area where multiple paths or streets converge, characterized by high levels of vehicular or pedestrian traffic.

Passerby

A person who is passing by a particular place, especially by chance rather than intentionally.