Question

As governor, Marcy has decided that anyone who works but earns less than $20,000 a year will have their health insurance premiums paid for by the government.

How does this affect the equilibrium price and quantity of medical services?
a. Diminishing returnsb. Moral Hazardc. Market Failured. Adverse Selectione. Principle-agent problem

Answer 1

They have risen.

Step-by-step explanation:

Demand has increased, but supply has remained constant.