Medicare is an example of a third-party payment for medical services that
A) causes providers to supply less of medical services than they would without the payment.
B) causes buyers to consume more of medical services than they would without the payment.
C) does not cause any change in the equilibrium position for medical services which existed without the subsidy.
D) causes the price of medical services to rise for the consumer once the payment is provided.

Question

Quizplus · Accepted Answer

Medicare incentivizes buyers to consume more medical services because they are not directly responsible for the full cost of the services. This can lead to increased demand for medical services, which can in turn increase healthcare costs.

Medicare Is an Example of a Third-Party Payment for Medical