Question

Which of the following statements is true? a. Physicians might not induce demand because they would lose leisure time. b. the concept of perfect agency is realistic. c. Information asymmetry is not necessary for physician demand inducement. d. All of the above. e. A & B only.

Answer 1

Option A

• Physicians may induce demand by making the customers purchase the health care based on their preferences.
• This will increase the cost of health care more than the benefit the patients receive because they are unaware about various health care alternatives.
• But most of the time physicians would not want to induce demand as they feel for doing so and inducing demand can also take away their leisure time if they are providing health care services all the time.