1a. Healthcare: Are healthcare providers(doctors, nurses, hospital managers, etc...)likely to have a more elastic supply curve? Or are patients more likely to have a relatively elastic demand curve? Explain the reasoning for your answer (connect it to the determinants of elasticity of supply and demand).

1b. Higher Education: Are university faculty & staff likely to have a more elastic supply curve? Or are students more likely to have a relatively elastic demand curve? Explain the reasoning for your answer (connect it to the determinants of elasticity of supply and demand).

Question 2 - Welfare Effects

2a. Given your answer for 1a, who receives more of the surplus benefit from healthcare subsidies? Healthcare consumers or producers?

2b. Given your answer for 1b, who receives more of the surplus benefit from higher education subsidies? Students or faculty/staff?

Question 3 - Prices

3. What effect does the subsidy have on the price paid by those who do not receive the subsidy (non-subsidized medical patients and college students)? In other words, what happens to the overall market price for the subsidized good or service?

Question 4 - Secondary Effects

4a. What effect does the subsidy have on improvements in quality? Is healthcare quality likely to be higher or lower when subsidized? What about higher education? Explain.

4b. What about waste? Is there likely to be more or less resource waste when these services are subsidized? Explain.