In 2016–2017 a government spent $135 billion on the health service. The diagram shows the provision of healthcare in that country.
What can we deduce about healthcare provision in the country if it were provided at zero price?
1 )
At price P the benefits to society are maximised.
2 )
It is non-rival in consumption.
3 )
It is unlimited in supply due to government funding.
It will need rationing as it will be overconsumed.
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