If the price of a good or service rises,households have to choose whether to buy less of that good or service or spend less on other goods and services.Studies have shown that when the price of health care rises,
A) people cut back on their spending of medical services.
B) people continue to consume the same amount of medical services and reduce spending on other goods and services, because medical services are viewed as a necessity.
C) people consume more medical services because these services are viewed as being more valuable, and they significantly reduce spending on other goods and services.
D) there is no correlation between the rising prices of medical services and the quantity of these services consumed.
Correct Answer:
Verified
Q43: If society decides it wants more of
Q50: According to the production possibility model,if more
Q52: Suppose there is some unemployment in the
Q59: Figure 2-6 Q74: Suppose your expenses for this term are Q78: The opportunity cost of taking an on-line Q79: If a country is producing efficiently and Q87: Any output combination inside a production possibility Q97: Consider a country that produces only two Q97: An increase in population shifts the production
![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents