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If the Government Were to Intervene in a Market Economy

Question 193

Multiple Choice

If the government were to intervene in a market economy and fix the price of visiting a health care provider below the market price, then we would expect, relative to the market outcome,


A) an increase in the number of visits people want to make and an increase in the number of visits health care providers want to provide.
B) an increase in the number of visits people want to make and a decrease in the number of visits health care providers want to provide.
C) a decrease in the number of visits people want to make and an increase in the number of visits health care providers want to provide.
D) a decrease in the number of visits people want to make and a decrease in the number of visits health care providers want to provide.

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