Here are some highlights from Wednesday's debate on the future of healthcare.
Naturally, these are light on specifics and are heavy on politics so let's consider some possibilities. Specifically, what do you think will happen to the equilibrium cost of healthcare if government is allowed to provide insurance? Using supply and demand, show what will happen and explain why it happened. What do you suppose the price-elasticity of demand is for healthcare? What about the price-elasticity of supply? Is this evidence for or against the government provision of healthcare?
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