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What are the implications of the government action

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Suppose that the government decides to pay for the visits of poor people, and all other people pay directly for their own visits. The government is willing to pay the market price.

1. Will the number of visits by poor people go up or down or stay the same? Why?

2. Will the price go up or down or stay the same?

3. Will the number of visits by people who are not poor go up or down or stay the same?

4. What are the implications of the government action?

Reference no: EM133358155

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