In a third-party payer system:
A) total expenditures generally fall.
B) total expenditures generally rise.
C) quantity demanded generally falls.
D) quantity supplied generally falls.

Question

Quizplus · Accepted Answer

In a third-party payer system, such as insurance, consumers are less sensitive to prices because they are not paying the full cost, leading to an increase in demand and generally higher total expenditures.

In a Third-Party Payer System