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Answer to Question #29240 in Microeconomics for Mariana
Question #29240
The government is considering a subsidy of health insurance to reduce the number of uninsured. In which of the following cases could the government increase the number of insured without causing dead weight loss?
-The demand for health insurance is perfectly elastic.
- In none of the cases.
-The supply of health insurance is perfectly elastic.
-The supply of health insurance is perfectly inelastic.
Please explain the correct choice.
-The demand for health insurance is perfectly elastic.
- In none of the cases.
-The supply of health insurance is perfectly elastic.
-The supply of health insurance is perfectly inelastic.
Please explain the correct choice.
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