Answer to Question #147474 in Microeconomics for Maria Laurenava

Question

A decision by the provincial governments to include counseling by psychologists within the public insurance plan would decrease the demand for physician services.”

Do you agree or disagree with this statement, and why?

Answer 1

I do not agree with the statement (False) - As both of these provide different services they are not substitutes for each other. Thus the demand for physicians will not be affected.