EBK ECONOMICS TODAY
18th Edition
ISBN: 9780100663336
Author: Miller
Publisher: YUZU
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Question
Chapter 4, Problem 2FCT
To determine
To state:
The reason why lower prices of drugs set by the Government may endanger the lives of the patients.
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Assume that the government decides to subsidize the price of healthcare. The subsidy will be given directly to individual consumers of medical-related goods and services. Who is likely to benefit more from this subsidy: Providers (doctors, nurses, hospital staff, etc....) or Patients? Explain your answer using a supply and demand diagram.
Suppose the government sets the maximum price for a normal doctor's visit at $20, but the current market price is $40. As a result of this government action, doctors will see:
more patients.
the same number of patients.
fewer patients.
The graph below represents a simplified hypothetical version of the market for medical procedures in Canada.
If the market is allowed to set the price and quantity of procedures, what price and quantity will it set?
P = $7,000, Q = 62 thousand
P = $12,000, Q = 106 thousand
P = $7,000, Q = 112 thousand
P = $49,000, Q = 62 thousand
Chapter 4 Solutions
EBK ECONOMICS TODAY
Ch. 4 - Prob. 4.1LOCh. 4 - Prob. 4.2LOCh. 4 - Prob. 4.3LOCh. 4 - Prob. 4.4LOCh. 4 - Prob. 4.5LOCh. 4 - Prob. aFCTCh. 4 - Prob. bFCTCh. 4 - Prob. cFCTCh. 4 - Prob. dFCTCh. 4 - Prob. eFCT
Ch. 4 - Prob. fFCTCh. 4 - Prob. 1CTQCh. 4 - Prob. 2CTQCh. 4 - Prob. 1FCTCh. 4 - Prob. 2FCTCh. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14P
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