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.
D
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When supply increases and the supply curve shifts to the right, equilibrium price ________ and equilibrium quantity ________
A) increases; decreases B) decreases; decreases C) increases; increases D) decreases; increases
An upward-sloping supply curve of Korean won in terms of Canadian dollars indicates that:
a. the higher the dollar price of Korean won, the more won will be demanded. b. the higher the dollar price of Korean won, the fewer won will be supplied. c. the lower the dollar price of Korean won, the more won will be demanded. d. the lower the dollar price of Korean won, the fewer won will be supplied. e. the Korean economy is stronger than the Canadian economy.