Figure 5-3 Figure 5-3 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 5-3.With insurance and a third-party payer system,the equilibrium quantity of medical services is

Question

Figure 5-3  Figure 5-3 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 5-3.With insurance and a third-party payer system,the equilibrium quantity of medical services is

Quizplus · Accepted Answer

In Figure 5-3, with insurance and a third-party payer system, the demand for medical services shifts to the right, resulting in an increase in equilibrium quantity from 800 (without insurance) to 1,200. Therefore, the best choice is C.

Figure 5-3 Figure 5-3 Represents the Market for Medical