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The following diagram, explain the effects of such a policy on the market for medical care, explicitly stating what will happen to demand, supply, equilibrium price and equilibrium quantity exchanged.
As we can observe from the diagram, at the vertical axis are showed the prices for medical care and at the horizontal axis is showed the quantity. Initially, the combination of the price and the quantity that balances the market is (P ,Q ). So we can say that the P clears the market for medical care. P also called equilibrium price, and it is the price at which the quantity demanded equals the quantity supplied...
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