Assume that the market for annual physical check-ups is in equilibrium, and not everyone gets an annual physical check-up.

Question

What is the effect on price and quantity if a government regulation fixes prices at the current level and requires everyone to get an annual physical check-up?

and...

Explain why a tax increase on cigarettes in one state alone might not lead to a substantial price increase for all customers in that state.

Answer 1

see my post dated 9/22