Is it possible to provide health care without rationing? In 1948every household in Britain received a leaflet stating that the newNational Health Service would \"provide you with all medical, dentaland nursing care. Everyone - rich or poor, man, woman, or child -can use it or any part of it. There are no charges, except for afew special items.\"
a) This pioneering system of health care provision, whichcelebrated its 60th anniversary in 1998, was based on theassumption that the quantity of health care that would be demandedat a zero price is finite. The quantity demanded neverthelessoverwhelms the quantity supplied at the zero price in Britain andall the countries that subsequently initiated similar systems andfound themselves confronted by shortages of health care services.How would a shortage show itself in such a situation?
b) If health care is made available to everyone at a zero moneyprice, and at this price the quantity demanded exceeds the quantitysupplied, how will health care be rationed?
c) What system of rationing would you recommend?
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