Question

A student claims that, “healthcare is too expensive, a price ceiling can make healthcare more affordable.”...

A student claims that, “healthcare is too expensive, a price ceiling can make healthcare more affordable.”

(a) Explain why a price ceiling can reduce the quality of healthcare provided.

(b) Explain why a price ceiling makes it more difficult for people to receive healthcare.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

A) price ceiling is a maximum limit imposed on the price in the market of a product or a service. in case of health services it implies that a particular health service will have a price ceiling. It would be binding if the market price of the providing that health service is greater than the ceiling price. in that scenario the quantity supplied will be less than the quantity demanded and there will be a shortage of healthcare services. this is the reason why price ceiling can reduce the quantity of healthcare provided

B) it makes difficult for people to receive healthcare because now there is more quantity demanded but the supply is limited. This indicates that not everyone who is willing to pay the price at the price ceiling is able to get the health care service. Ultimately this will result in the evolution of black market where health services will be provided at a very high cost.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Why are binding price ceiling laws passed? A. They make goods more expensive (and profitable) for...
Why are binding price ceiling laws passed? A. They make goods more expensive (and profitable) for firms. B. They encourage sellers to produce more of a good. C. They encourage producers to sell higher-quality products. D. They permit customers to obtain higher-quality products. E. They make a good less expensive for those customers who are able to purchase the good in the legal market. E?
If the government implements a non-binding or non-effective price ceiling on insulin, this will A) increase...
If the government implements a non-binding or non-effective price ceiling on insulin, this will A) increase the price consumers will pay for insulin B)Decrease the quantity of insulin the manufacturers will be willing to supply C)Have to set above the market equilibrium price to be effective D)Have no impact on either the equilibrium price or quantity Can you explain why its the right answer too please
Pros and Cons of Managed Care in America Managed healthcare can be defined as a health...
Pros and Cons of Managed Care in America Managed healthcare can be defined as a health care delivery system organized to manage health care cost, utilization, and quality. It is used in the United States and its main goal is to reduce the cost of for-profit health care and provide affordable care for all Americans. It includes an organization of providers, choice of payment type, and the record-keeping of services rendered. Its goal is to be an effective way for...
1. Roland is the president of the United States. In an attempt to make prescription drug...
1. Roland is the president of the United States. In an attempt to make prescription drug prices cheaper, he has imposed a binding price ceiling on drugs. What would he expect his critics to say? A. the binding price ceiling will encourage companies to overproduce drugs and will result in waste. B. the binding price will discourage patients from obtaining the drugs they need. C. the binding price ceiling will increase the likelihood that consumers will obtain needed drugs on...
A person claims to be able to make make a fair coin land heads more often...
A person claims to be able to make make a fair coin land heads more often than expected, using the power of telekenesis. A skeptical scientist investigates this claim and tosses a fair coin 75 times. It lands heads 41 times. Is there evidence to support the person’s claims? (a) State a sensible null hypothesis (b) State the precise definition of p-value and explain what “more extreme” means in this context (c) Is a one-sided or two-sided test needed? justify...
Please answer the question below in 2 or more paragraph's. John Jones, president of the student...
Please answer the question below in 2 or more paragraph's. John Jones, president of the student council was concerned about the price of text books. He did a linear regression on a sample of 10 text books, where price was the y (dependent variable) and number of pages was the x (dependent variable). The resulting equation in the form of y = mx + b was: y = 5x + 24. According to this equation, a book with no pages...
A. What happens if the cost of one material component of a pencil increases? (Check all...
A. What happens if the cost of one material component of a pencil increases? (Check all that apply) The price of pencils increase It may make another source of a material component of a pencil more desirable. Companies will attempt to exploit workers to reduce costs. Technology will drive down the price of other material components. B. Why is the making of a simple pencil such a complex task? (Check all that apply) making pencils is easy, almost anyone can...
An example of an industry that can limit trade and increase prices is: Question 22 options:...
An example of an industry that can limit trade and increase prices is: Question 22 options: a) oil. b) groceries. c) clothing. d) sugar. Restrictions on trade: Question 21 options: a) reduce income, increasing the necessity of child labor. b) allow children to leave jobs in agriculture for higher-paying jobs in manufacturing. c) lead to higher income for developing countries but not industrialized countries. d) reduce child labor by making countries more reliant on adult labor. Which of the following...
Question 1 If you are trying to make yourself as happy as you can be given...
Question 1 If you are trying to make yourself as happy as you can be given the constraints that you face, you are effectively: Select one: a. trying to find the intersection point between two budget constraints. b. trying to find the point on the budget constraint that is on the highest indifference curve. c. trying to find the point where the budget constraint and an indifference curve intersect. d. trying to find the point on an indifference curve that...
Suppose the equilibrium price of gasoline is $3 per gallon. a. Using the demand and supply...
Suppose the equilibrium price of gasoline is $3 per gallon. a. Using the demand and supply graph, draw this equilibrium in the space below. Make this graph large, it will be used for future questions. b. Now suppose the government imposes a binding price ceiling on this market. Identify a value for this price ceiling that would be binding and show it on the graph. Graphically show whether excess demand or excess supply would result. c. With the price ceilings,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT