Question

In an effort to create a healthcare safety net, the government requires employers to provide healthcare coverage to all employees. What impact will this increased coverage have on the labor demand for the producers of medical equipment in the short run?

Answer 1

Answer: a. It will increase the demand.

Explanation:

The government wants that the employers include the employees in the healthcare safety net. This will lead to increase in the number of members in the healthcare safety net. This will likely to increase the demand for instruments or medical equipment require for the treatment. Thus the demand for labor will increase for the production of medical equipment.