The reason for making a payment for the goods that consumers consume.

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Answer 1

Question

Chapter 1, Problem 1Q

To determine

The reason for making a payment for the goods that consumers consume.

Expert Solution & Answer

Explanation of Solution

In an economy, most goods have limited supply whereas their wants are unlimited. That means the inputs that are used to produce most goods and services (for example, capital and labor), are more scarce than the quantity that consumers desire to consume.

Here in this case, the price acts as a rationing mechanism to prevent the over-usage of a particular scarce resource by making that resource available at the quantity where demand for that resource equals its supply. However, in the case where the price is zero for a particular scarce resource, it will be over-used as its demand will be higher than its supply.

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Questions from textbook: Santerre, Rexford, E., and Neun, Stephan P. Health Economics: Theories, Insights, and Industry Studies, 6th Edition, ISBN 13: 978-1-111-822729. Mason, OH: South-Western, Cengage Learning, 2013. 1. Suppose a health expenditure function is specified in the following manner: E = 500 + 0.2Y where E represents annual health care expenditures per capita and Y stands for income per capita. a. Using the slope of the health expenditure function, predict the change in per capita health care expenditures that would result from a $1,000 increase in per capita income. b. Compute the level of per capita health care spending when per capita income takes on the following dollar values: 0; 1,000; 2,000; 4,000; and 6,000. c. Using the resulting values for per capita health care spending in part B, graph the associated health care expenditure function. d. Assume that the fixed amount of health care spending decreases to $250. Graph the new and original health care functions on…

Graph shows the daily market price of jeans when the tax on sellers is set to zero per pair supposed the government institutes attacks of $20.30 per pair to be paid by the seller what is the quantity after tax

Answer 2

Question

Chapter 1, Problem 1Q

To determine

The reason for making a payment for the goods that consumers consume.

Expert Solution & Answer

Explanation of Solution

In an economy, most goods have limited supply whereas their wants are unlimited. That means the inputs that are used to produce most goods and services (for example, capital and labor), are more scarce than the quantity that consumers desire to consume.

Here in this case, the price acts as a rationing mechanism to prevent the over-usage of a particular scarce resource by making that resource available at the quantity where demand for that resource equals its supply. However, in the case where the price is zero for a particular scarce resource, it will be over-used as its demand will be higher than its supply.

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Answer 3

Question

Chapter 1, Problem 1Q

To determine

The reason for making a payment for the goods that consumers consume.

Expert Solution & Answer

Explanation of Solution

In an economy, most goods have limited supply whereas their wants are unlimited. That means the inputs that are used to produce most goods and services (for example, capital and labor), are more scarce than the quantity that consumers desire to consume.

Here in this case, the price acts as a rationing mechanism to prevent the over-usage of a particular scarce resource by making that resource available at the quantity where demand for that resource equals its supply. However, in the case where the price is zero for a particular scarce resource, it will be over-used as its demand will be higher than its supply.

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Answer 4

Question

Chapter 1, Problem 1Q

To determine

The reason for making a payment for the goods that consumers consume.

Expert Solution & Answer

Explanation of Solution

In an economy, most goods have limited supply whereas their wants are unlimited. That means the inputs that are used to produce most goods and services (for example, capital and labor), are more scarce than the quantity that consumers desire to consume.

Here in this case, the price acts as a rationing mechanism to prevent the over-usage of a particular scarce resource by making that resource available at the quantity where demand for that resource equals its supply. However, in the case where the price is zero for a particular scarce resource, it will be over-used as its demand will be higher than its supply.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 1Q

To determine

The reason for making a payment for the goods that consumers consume.

Expert Solution & Answer

Explanation of Solution

In an economy, most goods have limited supply whereas their wants are unlimited. That means the inputs that are used to produce most goods and services (for example, capital and labor), are more scarce than the quantity that consumers desire to consume.

Here in this case, the price acts as a rationing mechanism to prevent the over-usage of a particular scarce resource by making that resource available at the quantity where demand for that resource equals its supply. However, in the case where the price is zero for a particular scarce resource, it will be over-used as its demand will be higher than its supply.

Answer 6

Chapter 1, Problem 1Q

To determine

The reason for making a payment for the goods that consumers consume.

Expert Solution & Answer

Explanation of Solution

In an economy, most goods have limited supply whereas their wants are unlimited. That means the inputs that are used to produce most goods and services (for example, capital and labor), are more scarce than the quantity that consumers desire to consume.

Here in this case, the price acts as a rationing mechanism to prevent the over-usage of a particular scarce resource by making that resource available at the quantity where demand for that resource equals its supply. However, in the case where the price is zero for a particular scarce resource, it will be over-used as its demand will be higher than its supply.

Answer 7

Chapter 1, Problem 1Q

To determine

The reason for making a payment for the goods that consumers consume.

Answer 8

Expert Solution & Answer

Explanation of Solution

In an economy, most goods have limited supply whereas their wants are unlimited. That means the inputs that are used to produce most goods and services (for example, capital and labor), are more scarce than the quantity that consumers desire to consume.

Here in this case, the price acts as a rationing mechanism to prevent the over-usage of a particular scarce resource by making that resource available at the quantity where demand for that resource equals its supply. However, in the case where the price is zero for a particular scarce resource, it will be over-used as its demand will be higher than its supply.