What are intended and unintended consequences

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Imagine a community with only one insurance company that provides coverage to everyone in that community (a universal/single pay or insurer). Currently, the payer does not pay anything for physician office visits. However, bowing to intense lobbying pressure, insurance will pay 80% of the cost of these visits effective January 1, while the patients will be responsible for 20%. Describe the likely effect on demand curves for office visits to a physician as a result. What are intended and unintended consequences and what do you suppose will be the intended and unintended consequences will be?

Reference no: EM13996845

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