Suppose that in a certain country called Litigia, patients have the legal right to sue their medical insurance providers. Now, suppose, however, that Litigia's government passes legislation that protects medical insurance providers from lawsuits, so that patients in Litigia can no longer sue their insurance providers. After the legislation is passed, what will happen to the supply curve for medical insurance? We cannot tell from the information provided. It will shift to the right. It will remain unchanged. It will shift to the left.
Suppose that in a certain country called Litigia, patients have the legal right to sue their medical insurance providers. Now, suppose, however, that Litigia's government passes legislation that protects medical insurance providers from lawsuits, so that patients in Litigia can no longer sue their insurance providers. After the legislation is passed, what will happen to the supply curve for medical insurance? We cannot tell from the information provided. It will shift to the right. It will remain unchanged. It will shift to the left.
Chapter1: Making Economics Decisions
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Transcribed Image Text:Suppose that in a certain country called Litigia, patients have the legal right to sue their medical
insurance providers.
Now, suppose, however, that Litigia's government passes legislation that protects medical
insurance providers from lawsuits, so that patients in Litigia can no longer sue their insurance
providers.
After the legislation is passed, what will happen to the supply curve for medical insurance?
We cannot tell from the information provided.
It will shift to the right.
C
It will remain unchanged.
It will shift to the left.
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Sometimes, government often takes some policy measures to protect the consumers/producers in order to promote efficiency in the economy.
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