Consider how health insurance affects the quantity of health care services performed. Suppose that the typical medical procedure has a cost of $120, yet a person with health insurance pays only $20 out of pocket. Her insurance company pays the remaining $100. (The insurance company recoups the $100 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.)

Stormie zanzibar owns a bakery in the fictitious country of olombia. each month the government’s market ministry mails her a large list of the regulated price of goods which include products like bread, muffins and flat bread. the list also dictates the types of goods she can sell at the bakery and what she is to charge. because of the regulations placed on these goods, stormie has increased her production of sweets, pies, cakes, croissants and buns and decreased her supply of breads, muffins and flat bread. she has taken these steps because the sweet goods’ prices are not government controlled. stormie zanzibar lives under what type of economy?