Figure 5-4
Figure 5-4 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 5-4.With insurance and a third-party payer system,what is the amount of the deadweight loss?

Question

Figure 5-4
  Figure 5-4 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 5-4.With insurance and a third-party payer system,what is the amount of the deadweight loss?

Quizplus · Accepted Answer

The deadweight loss in a third-party payer system with insurance is typically calculated as the difference between the cost of providing the service and the value to the consumer, multiplied by the quantity of services that are overconsumed due to the insurance. Without the specific details of Figure 5-4, the choice $3,000 is likely the calculated deadweight loss based on the given options.

Figure 5-4 Figure 5-4 Represents the Market for Medical Services