C. Now, suppose that Medicare is to lower the DRG payment rate. Please use the follow graph to trace the changes in demand curves, equilibrium price, privately insured patients served, and Medicare patients served. Please also verbally describe how this related to the concept of cost- shifting.

C. Now, suppose that Medicare is to lower the DRG payment rate. Please use the follow graph to trace the changes in demand curves, equilibrium price, privately insured patients served, and Medicare patients served. Please also verbally describe how this related to the concept of cost- shifting.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following graph input tool shows the daily demand for hotel rooms at the Big Winner Hotel and Casino in Las Vegas, Nevada. To help the hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool. Demand Factor Initial Value Average American household income $50,000 per year Roundtrip airfare from San Francisco (SFO) to Las Vegas (LAS) $250 per roundtrip Room rate at the Lucky Hotel and Casino, which is near the Big Winner $200 per night Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
The table below shows Tom's demand schedule for web tutoring before and after winning the lottery. Use the data provided to answer the following questions: Quantity Demanded (Hours per Semester) Price (per Initial Quantity After Increase Hour) Demanded in Income $50 1 8 45 2 9 40 3 10 35 5 12 30 7 14 25 9 16 20 19 22 15 10 27 12 15 20 Instructions: Enter your responses as a whole number. At what price would Tom buy 12 hours of web tutoring? a. Without a lottery win. per hour b. With a lottery win. per hour
P $1.25 $1.00 $0.75 $0.50 $0.25 Q 67758 3 Pt. 2) candy stops heart disease 3) the price of chocolate increases 4) Tech. advances in how candy is made 5) we tax candy. ABCDE Now use a new graph for each question below to show what happens to the equilibrium price and quantity for each of the following events. Make sure to include the initial supply (S1) and demand (D1) curves with their corresponding initial equilibrium price (P1) and Quantity (Q1) and then shift the Supply (S2) or Demand (D2) curve (not both) with the change in the Price (P2) and the Quantity (Q2). DRAW A NEW GRAPH FOR EACH QUESTION. The following questions/graphs should be in general terms, S1, S2, D1, D2, P1, P2, Q1, Q2. Thus the graphs do not need actual numbers, similar to the PowerPoint lectures. Email me if you any have questions. NOTE: This is what the midterm exam questions will be like and the graphs are worth the points.
When excess demand exists for tickets to a major sporting event or a concert, profit opportunities exist for scalpers. The table below indicates the quantities demanded at various prices, fill in the values for the supply curve for tickets to a sold-out venue that holds 20,000 people. Price per Ticket Quantity of Tickets Demanded Quantity of Tickets Supplied 20,000 $50 45,000 100 40,000 20,000 150 35,000 20,000 200 30,000 20,000 250 25,000 20,000 300 20,000 350 15,000 20,000 20,000 The fact that there is a face-value price of $50 per ticket could be illustrated on a graph as a horizontal line at $50 The equilibrium price that will prevail in the market if scalpers are allowed to operate in the black market would be $ 300 per ticket. The quantity of tickets demanded at the face-value price is 45,000 tickets. For this example, a shortage of tickets exists at the face-value price.
is now time to test your mastery of supply and demand. Consider the market for hospital services. Use a graph similar to the one in Figure 3.5: Label the vertical axis “Price of Hospital Services” and the horizontal axis “Quantity of Hospital Services.” Draw the supply and demand curves, and identify the equilibrium price and the quantity of hospital services. Now suppose that due to a nursing shortage, the average nurse’s salary increases 10 percent. What effect will this increased cost have on the market for hospital services? How will the increase in the average nurse's salary affect the supply or demand curve in the market for hospital services, and in which directio
Fill in the blank with the corresponding options. Be sure to type them exactly as they are written in the 'blue' text to receive credit for your answers. Do not include the apostrophes ('). ('supply' or 'demand') curve will As more elderly people move to Tampa, the shift ('right' or 'left') for health services, such as memory disorder clinics and assisted living communities. This will cause the market price of health services to ('increase' or 'decrease') and the market quantity to ('increase' or 'decrease'). This shift will be reflected as a ('movement along' or 'shift of') the other curve.
Consider two markets: the market for cat food and the market for dog food. The initial equilibrium for both markets is the same, the equilibrium price is $4.50, and the equilibrium quantity is 31.0. When the price is $8.75, the quantity supplied of cat food is 75.0 and the quantity supplied of dog food is 105.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for dog food. Please round to two decimal places.
Question #1: On the news there has been outrage over the price of Epipens, a medication needed for allergic reactions to food and bee stings. The price of a two-pack of Epipens has risen from $100 to $600. The number of Epipens purchased fell from 1000 to 400. At the current time, there are no substitutes for this drug Will this increase in price cause a decrease in demand or a decrease in quantity demanded? Illustrate your answer graphically (either by showing a movement along the demand curve or by shifting the demand curve).
A publisher has established the supply equation of one of their textbooks to be p =q² and is show in blue on the graph. They also found the demand equation to be p = -9² +20 and is shown in red. Where p is in tens of dollars and q is the quantity in hundreds of textbooks. 20 Find the equilibrium price. $ p Find the equilibrium quantity. 16- Find the amount demanded when the price is $1800. 12- Find the amount supplied when the price is $20. Quantity 12
What happens to the equilibrium price and quantity of a good (such as alcohol) if you prohibit its use and sale? Demonstrate using supply and demand graphical analysis.
The following graph input tool shows the daily demand for hotel rooms at the Big Winner Hotel and Casino in Las Vegas, Nevada. To help the hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool. Demand Factor Initial Value Average American household income $40,000 per year Roundtrip airfare from New York (JFK) to Las Vegas (LAS) $250 per roundtrip Room rate at the Lucky Hotel and Casino, which is near the Big Winner $250 per night Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. For each of the following scenarios, begin…
The table below shows Bellamy's demand schedule for tutoring before and after winning the lottery. Use the data provided to answer two questions. Quantity Demanded (Hours per Semester) Price (per Hour) $23 20 18 15 13 10 8 5 Initial Quantity After Increase in Demanded Income 4 12 6 8 10 12 14 16 18 $ Instructions: Enter your responses as a whole number. At what price would Bellamy buy 12 hours of tutoring? a. Without a lottery win. 20 per hour b. With a lottery win. 14 16 18 20 22 24 26 35 per hour