If the supply of medical services is perfectly elastic, then the effect of Medicaid is to:
A) increase the market price of medical services.
B) result in the efficient amount of medical services.
C) cause recipients to consume medical services beyond the point at which their marginal benefits per year equal the marginal social costs of medical services.
D) both a and c
Correct Answer:
Verified
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B)1972.
C)1977.
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