1. Consider the outpatient clinic services in hospitals which are of competitive in nature. Analyze each issue below as an independent event. (a) Vaccination is available at outpatient clinic and the government subsidizes the public to take vaccination during the peak season of flu. Use a demand-supply diagram to analyze the effect on the market for outpatient clinic services. (b) Due to rising operation cost, family doctors (private practitioners) have to increase their service price. How would this affect the market for outpatient clinic services? Discuss with a demand-supply diagram

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter22: Frontiers Of Microeconomics
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1. Consider the outpatient clinic services in hospitals which are of competitive in nature. Analyze each issue below as an independent event.

(a) Vaccination is available at outpatient clinic and the government subsidizes the public to take vaccination during the peak season of flu. Use a demand-supply diagram to analyze the effect on the market for outpatient clinic services.

(b) Due to rising operation cost, family doctors (private practitioners) have to increase their service price. How would this affect the market for outpatient clinic services? Discuss with a demand-supply diagram.

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