Development of the supplier-induced demand hypothesis

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A. True/False Explain. Indicate whether each of the following statements is true or false and then explain why you think this. Include in your explanation any pertinent institutional details and economic reasoning (including appropriate graphs and equations). Please provide concise, clear answers with minimal irrelevant detail. Explanation is required.

1. An empirical observation that led to the development of the supplier-induced demand hypothesis is that when the supply of physicians in a market increases, the price also increases, which defies the basic rules of supply of demand.

2. Proposed policies to change the definition of full-time employment in the Affordable Care Act to 40 hours a week would cause more people to gain employer-provided insurance under the ACA compared to the current law.

Reference no: EM13974852

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