assuming competitive markets, use supply and demand graphs to appraise

Jun 25th, 2015
Business Finance
Price: $20 USD

Question description

For each graph you draw for each part of this question, label both horizontal and vertical axis, all curves, and original as well as new equilibrium prices and quantities. Assuming competitive markets, use supply-and-demand graphs to appraise each of the following statements

a. Assume the supply curve for medical care is positively sloped and the demand curve is negatively sloped. Assume also that 20% of the population does not have health insurance. Now a new law is passed that provides health insurance to everyone, including those previously without insurance. As a result, the equilibrium price and quantity of medical care will both rise. 

b. Now assume the supply curve is horizontal (flat). This will have no effect on the equilibrium price and quantity of medical care compared with the results in part (a) above. 

Tutor Answer

(Top Tutor) Daniel W
School: Duke University

Studypool has helped 1,244,100 students

Review from student
" Goes above and beyond expectations ! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1831 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors