Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 5, Problem 6QP
To determine
The changes in the supply curve.
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Draw the demand curve in the market for medical care and upload your picture of your diagram, the horizontal axis should represent the number of medical procedures.)
Show the quantity of procedures demanded if each procedure has a price of $100.
On your diagram, show the quantity of procedures demanded if consumers pay only $20 per procedure. If the cost of each procedure to society is truly $100, and if individuals have health insurance as described above, will the number of procedures performed maximize total surplus? Explain.
Consider how health insurance affects the quantity of healthcare services performed. Suppose that the typical medical procedure has a cost of $100, yet a person with health insurance pays only $20 out of pocket. Her insurance company pays the remaining $80. (The insurance company recoups the $80 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undertake.)
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.
The demand curve for kidneys is downward sloping and the supply curve of kidneys is upward sloping. If it is unlawful to pay someone for a kidney, fewer kidneys will be forthcoming. In other words, the quantity supplied of kidneys is less at $0 than at, say, 20,000.Fewer kidneys supplied mean fewer kidney. Would there be fewer kidney transplants if the supply curve of kidneys is vertical?
Chapter 5 Solutions
Economics (MindTap Course List)
Ch. 5.1 - Prob. 1STCh. 5.1 - Prob. 2STCh. 5.2 - Prob. 1STCh. 5.2 - Prob. 2STCh. 5.3 - Prob. 1STCh. 5.3 - Prob. 2STCh. 5.4 - Prob. 1STCh. 5.4 - Prob. 2STCh. 5.5 - Prob. 1STCh. 5.5 - Prob. 2ST
Ch. 5.6 - Prob. 1STCh. 5.6 - Prob. 2STCh. 5.7 - Prob. 1STCh. 5.7 - Prob. 2STCh. 5.8 - Prob. 1STCh. 5.8 - Prob. 2STCh. 5.9 - Prob. 1STCh. 5.9 - Prob. 2STCh. 5.10 - Prob. 1STCh. 5.10 - Prob. 2STCh. 5.11 - Prob. 1STCh. 5.11 - Prob. 2STCh. 5.12 - Prob. 1STCh. 5.12 - Prob. 2STCh. 5 - Prob. 1QPCh. 5 - Prob. 2QPCh. 5 - Prob. 3QPCh. 5 - Prob. 4QPCh. 5 - Prob. 5QPCh. 5 - Prob. 6QPCh. 5 - Prob. 7QPCh. 5 - Prob. 8QPCh. 5 - Prob. 9QPCh. 5 - Prob. 10QPCh. 5 - Prob. 11QPCh. 5 - Prob. 12QPCh. 5 - Prob. 13QPCh. 5 - Samantha is flying from San Diego, California to...Ch. 5 - Prob. 15QPCh. 5 - Prob. 16QPCh. 5 - Prob. 1WNGCh. 5 - Prob. 2WNGCh. 5 - Prob. 3WNGCh. 5 - Prob. 4WNGCh. 5 - Prob. 5WNGCh. 5 - Prob. 6WNG
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- The following graph shows the market for doctor's office visits. In this market, the central government provides health insurance to all consumers. The government insurance plan stipulates a copayment of $20 per doctor's office visit. That is, consumers pay $20 for each doctor's appointment, and the government pays the remainder. In the absence of the copayment plan, the equilibrium price would be ____ per doctor's office visit, and the equilibrium quantity would be _____ million visits per month. Under the copayment plan, the quantity of visits demanded by consumers is ______ million visits per month. Doctors are willing to supply this number of office visits at a price of ______ per visit. Therefore, the government will pay ______ per visit under the copayment scheme. In the absence of the copayment plan, total payments for visits to the doctor amount to ______ million per month. Under the copayment plan, total payments for visits to the doctor amount to _________…arrow_forwardA short piece from The Economist noted that “A doctor of general medicine in New York typically earns 64% less than a peer in Alabama.” This is despite the fact that there is a significantly higher demand for general medicine in New York compared to Alabama. Use a market supply and demand for general medicine practitioners in both New York and Alabama to depict this situation, and briefly explain why this is the case.arrow_forwardSuppose the market demand for Omani Halwa is given by Qd = 400 – 20 P and the market supply for Omani Halwa is given by Qs = 20 P – 200, where P = price (per Omani Halwa). Graph the supply and demand schedules for Omani Halwa using $10 through $20 as the value of P. In equilibrium, how many Omani Halwas would be sold and at what price? What would happen if suppliers set the price of Omani Halwa at $20? Explain the market adjustment process. “A household’s decision about what quantity of a particular output, or product to demand depends on a number of factors.” Discuss the major factors affecting the demand.arrow_forward
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