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7. Explain the impact of consumer search on the demand curve for an individual physician-firm. Given that the price of a physician visit is higher in a large city than a small city, what role might search play? What might be an alternative explanation to search for this price difference?
8. Discuss the similarity and difference between the impact of induced demand and imperfect information on the amount of medical care a physician prescribes for a patient. Give at least one example of evidence from class on the existence of induced demand.
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