A. True/False Explain. Indicate whether each of the following statements is true

Question

A. True/False Explain. Indicate whether each of the following statements is true or false and then explain why you think this. Include in your explanation any pertinent institutional details and economic reasoning (including appropriate graphs and equations). Please provide concise, clear answers with minimal irrelevant detail. Explanation is required.

1.An empirical observation that led to the development of the supplier-induced demand hypothesis is that when the supply of physicians in a market increases, the price also increases, which defies the basic rules of supply of demand.

2Proposed policies to change the definition of full-time employment in the Affordable Care Act to 40 hours a week would cause more people to gain employer-provided insurance under the ACA compared to the current law.

Explanation / Answer

1. False, as we know when supply of any servece increases, price falls. So, demand for that also falls because of increase in price. This process will continue till the situation supply=demand then price will stabilise in the economy

2. True, as more incentive will be given to employee, more worker will regain from the policy. So, the supply of workers will also increase.

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