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The health sector responds to an increase in supply with rising prices and increasing output. How does the producer sovereignty approach(left wing) use asymmetry of information, imperfect agency, the target-income hypothesis, Roemer’s law, the special nature of health care and Munchausen’s syndrome to suggest the supply-induced demand(SID) hypothesis to explain this?
How might the intensity of service evidence support the SID hypothesis?
How do neoclassical economists(right-wing) use transactions costs, rising average hospital costs and the increased demand for quality and the association between income and opportunity costs to support the consumer sovereignty hypothesis explanation for phenomenon?
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