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,what is the amount of the deadweight loss?

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,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 total cost of the service and the amount paid by the consumer, multiplied by the quantity of services not consumed due to the price distortion. Without the figure, the exact calculation isn't possible, but $5,000 is a plausible estimate based on typical scenarios.

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