Figure 7-4 Figure 7-4 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 7-4. With insurance and a third-party payer system, what is the amount of the deadweight loss?

Question

Figure 7-4  Figure 7-4 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 7-4. With insurance and a third-party payer system, what is the amount of the deadweight loss?

Quizplus · Accepted Answer

The deadweight loss in a third-party payer system is the loss of economic efficiency when the quantity of a good that is bought and sold is below the market equilibrium quantity. The amount of deadweight loss is typically calculated as the area of the triangle formed between the supply and demand curves and the quantity transacted. Without the specific figure, the answer is based on typical economic principles.

Figure 7-4 Figure 7-4 Represents the Market for Medical