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Economics Homework Two - Model (view source)
Revision as of 19:40, September 20, 2009
, 19:40, September 20, 2009added one
7. Explain ''why'' waiting lists develop in countries (like Canada and England) where the government prohibits anyone from charging more than fixed prices for medical services, assuming that these fixed prices are lower than what the prices would be under supply and demand in the free market. (Hint: the reason is related to the effect of price controls on the ''supply'' of a good or service.)
7. Explain ''why'' waiting lists develop in countries (like Canada and England) where the government prohibits anyone from charging more than fixed prices for medical services, assuming that these fixed prices are lower than what the prices would be under supply and demand in the free market. (Hint: the reason is related to the effect of price controls on the ''supply'' of a good or service.)
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:Waiting lists develop in countries (like Canada and England) where the government prohibits anyone from charging more than fixed prices for medical services, assuming that these fixed prices are lower than what the prices would be under supply and demand in the free market, because the demand is greater then the supply. More people would be able to afford medical treatments, but the doctors wouldn't make as much money so they wouldn't do as many of the treatments so waiting lists would develop. Also people wouldn't want to be doctors because it wouldn't pay as much as it did before the law was passed. (Seth)
===Honors===
===Honors===