Principles of Microeconomics, California Edition
2nd Edition
ISBN: 9780393622102
Author: Dirk Mateer, Lee Coppock
Publisher: NORTON
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Chapter 6, Problem 10SP
To determine
Explain the effect of market
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Should There be a Market for Kidneys? People are born with two kidneys, but they usually need only one. Most of us walk around with an extra organ that we don't really need, while some of our fellow citizens are dying to get one. Is this fair? Should there be a market for Kidneys? Who would benefit the most from the market for Kidneys?
Listen to thisLinks to an external site. podcast about the market for human organs. https://www.npr.org/2008/05/21/90632108/should-we-legalize-the-market-for-human-organs Initial Response: Is there currently a surplus or shortage of human organs available for transplant? Using the demand/supply framework, explain how legalizing the trade for human organs will help move the market towards an equilibrium. Reply: Add to your original response by answering this question. What other product/market do you think should be legalized (or one that is currently legal and should not be) and why?
What would happen if, in order to provide lower-cost health care, the government decided to set a price ceiling (Pmax) in the health insurance market? (Answer questions a, b, and below)
a. What is the effect of this maximum price legislation on the market for health insurance?
b. Briefly explain the situation for both consumers snd producers (i.e health care providers)
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Principles of Microeconomics, California Edition
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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 $20 for each doctor's appointment, and the government pays the remainder. In the absence of the copayment plan, the equilibrium price would be ____ per doctor's office visit, and the equilibrium quantity would be _____ million visits per month. Under the copayment plan, the quantity of visits demanded by consumers is ______ million visits per month. Doctors are willing to supply this number of office visits at a price of ______ per visit. Therefore, the government will pay ______ per visit under the copayment scheme. In the absence of the copayment plan, total payments for visits to the doctor amount to ______ million per month. Under the copayment plan, total payments for visits to the doctor amount to _________…arrow_forwardPage 11 of 11 1707 words KX Zix Accessibility: Investigate 10. Cost Shifting The following figure represents a hospital facing both private and Medicare patients. Please use the graph to answer the following questions. Hospital Payment ($) 0 B Patients (Hospital Admissions) A. If Medicare decides to cut the DRG price, what will be the effect on the number of private and Medicare patients served by the hospital. Please draw the new demand curves and label the new number of patients in the graph above and discuss the effect briefly. B. What is the concept of cost-shifting? What does the above analysis tell you about cost-shifting? Display Settings Focus + 1009arrow_forwardWhich of the following is NOT a funded food assistance program in the United States?arrow_forward
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