1. When the quality of a medical service rises, what happens
to the demand curve for that service? What if quality increases in ways that
are unobservable to the consumer, such as a reduction in the probability of
adverse side effects?
2. What would happen to demand curves for medical care if
consumer income increased? (Dont forget the effects of income on consumption
of health-affecting commodities such as running shoes, cigarettes, fatty foods,
automobile air bags, etc.)
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