Figure 5-3 Figure 5-3 represents the market for medical services with and without insurance,and the effect of a third-party payer system on the demand for medical services.
-Refer to Figure 5-3.With insurance and a third-party payer system,what price do doctors receive for medical services?

Question

Figure 5-3  Figure 5-3 represents the market for medical services with and without insurance,and the effect of a third-party payer system on the demand for medical services.
-Refer to Figure 5-3.With insurance and a third-party payer system,what price do doctors receive for medical services?

Quizplus · Accepted Answer

In the market for medical services with insurance and a third-party payer system, the price received by doctors for medical services is $65. This is shown by the intersection of the demand curve and the supply curve at the quantity of Q2, which corresponds to the price level of $65. At this price level, the quantity demanded increases from Q1 to Q2 due to the third-party payment system, which is represented by the shift in the demand curve from D1 to D2. This increase in demand leads to an increase in the equilibrium price from P1 to P2. Therefore, the correct answer is C) $65.

Figure 5-3 Figure 5-3 Represents the Market for Medical