Use the following to answer questions . Exhibit: The Market for Health Care -(Exhibit: The Market for Health Care) At price P₃ the total cost of health-care services compared to price P₁ has increased from: A) OP₃BQ₂ to OP₁AQ₂. B) OP₁AQ₁ to OP₃BQ₂. C) OP₃BQ₂ to OP₁AQ₁, and consumers pay OP₁AQ1₂. D) OP₁AQ₁ to OP₃BQ₂, and insurance pays OP₂CQ₂.

Question

Quizplus · Accepted Answer

The exhibit shows that at price P₁, the total cost of healthcare services is equal to OP₁AQ₁, and at price P₃, the total cost of healthcare services is equal to OP₃BQ₂. Therefore, the increase in total cost of healthcare services between these two prices is from OP₁AQ₁ to OP₃BQ₂, meaning that the best choice is B.

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