Question

Which of the following would contribute to the high price of health care? Choose one or...

Which of the following would contribute to the high price of health care? Choose one or more:

A. Supply of health care is limited.

B. Many people use Medicare and Medicaid.

C. Demand for health care is relatively elastic.

D. There are many providers of health care in the industry.

E. Demand for emergency care is relatively inelastic.

Homework Answers

Answer #1

High prices of health care can be due to the limited supply of health care. Where there are fewer suppliers than actual demand, there is always a gap between demand and supply and suppliers have the incentive to sell at a higher price. Also, the demand for emergency being relatively inelastic as people are not much concerned about the prices.

Note that all other options rather supports the lower prices hypothesis for healthcare.

Thus, Option A and E are correct answers.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Given a demand curve of Q=100−2P. 1.Calculate the price at which demand is unit elastic. This...
Given a demand curve of Q=100−2P. 1.Calculate the price at which demand is unit elastic. This price is___ (Round your answer to two decimal places.) 2. Find the quantity where demand is unit elastic. This quantity is___ (Round your answer to two decimal places.) 3.At quantities lower than the value found in Part 2, the demand curve is Choose one: A. perfectly elastic. B. relatively elastic. C. relatively inelastic. D. perfectly inelastic. 4.At quantities higher than the value found in...
1) In general the demand for a good with a lot of substitutes will be more...
1) In general the demand for a good with a lot of substitutes will be more ___________ than the demand for a good with less substitutes A) elastic B) inelastic C) unitary elastic D) None of the above 2) A major finding in the RAND study  is A) copays or coinsurance rates are positively related to usage of health care services (higher copays, more usage of health services) B) copays or coinsurance rates are negatively related to usage of health care...
Please Answer in 3 sentences. One of the concerns about a universal health care system, where...
Please Answer in 3 sentences. One of the concerns about a universal health care system, where ALL people would qualify and be able to receive health care, would be that certain types of care, and specific procedures would be "rationed." What does it mean to "ration" health care? An older person who has multiple health problems and large health-care costs can "spend-down" each month so that they can be eligible for Medicare AND Medicaid. What does it mean to "spend-down?"
Would you expect the elasticity of demand to be different for hospital care, physician visits, insulin...
Would you expect the elasticity of demand to be different for hospital care, physician visits, insulin for diabetes, plastic surgery, mental health care, and emergency room visits? Why or why not? Do you think one is likely to be more elastic than the others? Which one do you expect to me the most (least) elastic? What does the evidence show about elasticity of demand for hospital care, physician visits, mental health care, plastic surgery, and emergency room visits, if anything?
A perfectly competitive market is the baseline to which real-world markets are often compared. Health care...
A perfectly competitive market is the baseline to which real-world markets are often compared. Health care markets differ from this baseline in all of the following ways, EXCEPT: Question 20 options: a) There is a principal-agent relationship between buyers (patients) and sellers (providers like physicians). b) often one party to a transaction has more information than the other party. c) Market supply is restricted by use of regulations. d) Market prices do not always convey information about costs and benefits....
1. Which of the following would you NOT expect to be an effect of a large...
1. Which of the following would you NOT expect to be an effect of a large increase in the number of insured persons. a.The demand curve for health care shifts to the right. b.The price of health care increases. c. Total health care expenditure increases. d. The quantity of health care used decreases. 2. The patent on a medication will soon expire. Which of the following would we NOT expect to happen after the patent expires? a.The price of the...
16. A pre-existing condition is a ______ one that is diagnosed before a person obtains health...
16. A pre-existing condition is a ______ one that is diagnosed before a person obtains health insurance. A) acute B) fatal C) chronic D) serious 17. A ______ organization provides health care at its own facilities for a fixed monthly fee. A) health maintenance B) private provider C) health management D) preferred provider 18. A group of doctors/hospitals that agree to provide specified medical services to members at prearranged fees is: A) preferred provider organization B) primary care organization C)...
The federal program of health insurance for the elderly and some disabled individuals is   called Medicare...
The federal program of health insurance for the elderly and some disabled individuals is   called Medicare CHIP Medicaid VA A way of making up losses in health insurance by charging more to the insured is termed The “Robin Hood” theory Co-Payment A Premium Cost Shifting An example of Cost Sharing would be Package Pricing A Beneficiary A Co-Payment A Single Payer System The Affordable Care Act will have an impact on what portion of a select groups (high earners) pay...
Which of the following statements about price elasticity of demand is correct? Select one: a. The...
Which of the following statements about price elasticity of demand is correct? Select one: a. The higher the price elasticity of demand, the steeper the demand curve. b. Inelastic demand implies that there are few close substitutes. c. Elastic demand implies a firm's high market power. d. Price elasticity of demand is equal to the slope of the demand curve. e. The higher a firm's markup, the higher the price elasticity of demand.
Which of the following correctly describes how a​ firm's monopoly power would​ decrease? A. If the...
Which of the following correctly describes how a​ firm's monopoly power would​ decrease? A. If the number of firms​ increases, the​ firm's demand will become more inelastic. B. If other firms are reluctant to raise their​ price, the​ firm's demand will become more inelastic. C. If the production process includes more fixed​ inputs, the​ firm's demand will become more elastic. D. If the cost of production​ increases, the​ firm's demand will become more elastic. E. If the market demand curve...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT