EBK ECONOMICS TODAY
18th Edition
ISBN: 9780133920116
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.
Discuss the kind of pressure the Health
Maintenance Organizations (HMO) exerted on
the price of drugs.
Demand studies in health care have provided estimates of both income and price elasticity. Estimates of income elasticity are usually above +1.0 and estimates of price elasticity typically range between −0.1 and −0.75 (with hospital services at the lower end and elective services at the upper end). What is the significance of these estimates to policy makers?
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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