The figure given below shows the demand (D₁and D₂) and supply (S) curves of medical care. Figure 18.1

-Refer to Figure 18.1.One possible reason for the shift of the demand curve from D₁to D₂ is the:

Question

The figure given below shows the demand (D₁and D₂) and supply (S) curves of medical care. Figure 18.1

The figure given below shows the demand (D<sub>1 </sub>and D<sub>2</sub>) and supply (S) curves of medical care. Figure 18.1 -Refer to Figure 18.1.One possible reason for the shift of the demand curve from D<sub>1 </sub>to D<sub>2</sub> is the: A) increase in the cost of producing new drugs. B) restriction imposed by the government on the sale of new drugs. C) emergence of Medicare and Medicaid programs of the U.S.government. D) economies of scale experienced while producing medical care. E) decrease in the cost of producing medical care.

-Refer to Figure 18.1.One possible reason for the shift of the demand curve from D₁to D₂ is the:

Quizplus · Accepted Answer

The emergence of Medicare and Medicaid programs of the U.S. government would increase the demand for medical care services, as more people would now have access to them. This would shift the demand curve to the right from D₁ to D₂. Option A is incorrect as an increase in the cost of producing new drugs would affect the supply of medical care, not demand. Option B is incorrect as a restriction on the sale of new drugs would also affect supply, not demand. Option D is incorrect as economies of scale would affect supply, not demand. Option E is incorrect as a decrease in the cost of producing medical care would affect supply, not demand.

The Figure Given Below Shows the Demand (D1 and D2)

The Figure Given Below Shows the Demand (D₁and D₂)