Use the following to answer question(s): The Market for Health Care

-(Exhibit: The Market for Health Care) Based on the exhibit and assuming that there are no third-party payers:
A) the equilibrium quantity is Q₂.
B) the equilibrium quantity is Q₁.
C) the total amount spent on health-care services at the equilibrium price is given by the area OP₃BQ₂.
D) none of the above are true.

Question

Use the following to answer question(s): The Market for Health Care
 
-(Exhibit: The Market for Health Care) Based on the exhibit and assuming that there are no third-party payers:
A) the equilibrium quantity is Q₂. 
B) the equilibrium quantity is Q₁. 
C) the total amount spent on health-care services at the equilibrium price is given by the area OP₃BQ₂. 
D) none of the above are true.

Quizplus · Accepted Answer

The equilibrium quantity in a market without third-party payers is determined where the supply and demand curves intersect, which is at Q₁.

Use the Following to Answer Question(s): the Market for Health