The figure given below represents demand for and supply of hospital beds in Anytown,U.S.A.,as shown by curves D and S 1 in the following figure.If the hospital receives permission to expand,its new supply curve will be S 2 .Price level P 1 is the fixed prospective payment reimbursement rate paid by Medicare to the hospital,regardless of actual cost. Figure 18.3

-According to Figure 18.3,the surplus of beds caused by the fixed reimbursement rate,before the hospital expansion,is the difference between _____ and _____.

Question

The figure given below represents demand for and supply of hospital beds in Anytown,U.S.A.,as shown by curves D and S₁in the following figure.If the hospital receives permission to expand,its new supply curve will be S₂.Price level P₁ is the fixed prospective payment reimbursement rate paid by Medicare to the hospital,regardless of actual cost. Figure 18.3

The figure given below represents demand for and supply of hospital beds in Anytown,U.S.A.,as shown by curves D and S<sub>1 </sub>in the following figure.If the hospital receives permission to expand,its new supply curve will be S<sub>2</sub>.Price level P<sub>1</sub> is the fixed prospective payment reimbursement rate paid by Medicare to the hospital,regardless of actual cost. Figure 18.3 -According to Figure 18.3,the surplus of beds caused by the fixed reimbursement rate,before the hospital expansion,is the difference between _____ and _____. A) Q<sub>2</sub>; Q<sub>1</sub> B) Q<sub>4</sub>; Q<sub>1</sub> C) Q<sub>4</sub>; Q<sub>2</sub> D) Q<sub>3</sub>; Q<sub>1</sub> E) Q<sub>3</sub>; Q<sub>2</sub>

-According to Figure 18.3,the surplus of beds caused by the fixed reimbursement rate,before the hospital expansion,is the difference between _____ and _____.

Quizplus · Accepted Answer

The surplus of beds is the quantity supplied minus the quantity demanded at the fixed reimbursement rate. Before the hospital expansion, this is the difference between QS1U1B11S1U1B0 and QD1U1B11S1U1B0, which is QS1U1B13S1U1B0. Therefore, the answer is D.

The Figure Given Below Represents Demand for and Supply of Hospital