Exhibit 6-19
-Refer to Exhibit 6-19, which is a demand curve for Medicare benefits. A $1 payment for services would reduce utilization, yet would still leave beneficiaries with a substantial consumer surplus.

Question

Exhibit 6-19 
-Refer to Exhibit 6-19, which is a demand curve for Medicare benefits. A $1 payment for services would reduce utilization, yet would still leave beneficiaries with a substantial consumer surplus.

Quizplus · Accepted Answer

The statement is true. As the demand curve shows, the quantity demanded of Medicare benefits would decrease slightly with a $1 payment, but beneficiaries would still value the service above the price and have a consumer surplus.

Exhibit 6-19 -Refer to Exhibit 6-19, Which Is a Demand Curve for Demand