Which of the following will not change the demand for office visits to the physician?
a. unusually cold and damp weather during the winter.
b. a change in the price of an office visit.
c. layoffs at the local plant causing a decrease in the number of people with health insurance in the community.
d. television advertising by drug manufacturers to promote a new over-the-counter influenza treatment.
e. they all change the demand for office visits.
Question 2
If an individual's supply of labor curve is backward bending, (that is, labor supply falls at high wage rates) then:
a. the substitution effect always dominates the income effect.
b. the income effect always dominates the substitution effect.
c. the substitution effect dominates at low real wage levels and the income effect dominates at high real wage levels.
d. the income effect dominates at low real wage levels and the substitution effect dominates at high real wage levels.
A medical assistant helps the physician with a patient.
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