Figure 5-5
Figure 5-5 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 5-5.With insurance and a third-party payer system,the equilibrium quantity of medical services is

Question

Figure 5-5
  Figure 5-5 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 5-5.With insurance and a third-party payer system,the equilibrium quantity of medical services is

Quizplus · Accepted Answer

With insurance and a third-party payer system, the demand for medical services increases, which results in an increase in the equilibrium quantity of medical services. The intersection of the demand curve with the supply curve shows an equilibrium point of quantity 1,200.

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