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In the country of Drazah Larom (moral hazard spelled backward), health insurance is nonexistent and all medical markets are perfectly competitive. Use supply and demand analysis to explain the impact of the following changes on the price and output of physician services.
A. A decrease in the wage of clinic-based nurses
B. The adoption of cost-enhancing medical technologies
C. An aging population and a correspondingly more severe patient case-mix
D. Declining consumer income
E. A lower market price for physician services (be careful here
Jose rents office space for $20,000 per year. He uses the office to fill out tax returns for 1
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Assume that in 1984 the total output in a single-good economy was 7000 buckets of chicken.
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