Principles of Microeconomics
7th Edition
ISBN: 9781305156050
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 7, Problem 11PA
Subpart (a):
To determine
The demand and supply of medical care.
Subpart (b):
To determine
The demand and supply of medical care.
Subpart (c):
To determine
The demand and supply of medical care.
Subpart (d):
To determine
The demand and supply of medical care.
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Students have asked these similar questions
How would each of following changes affect the demand curve for acupuncture?
a. The price of an acupuncture session increases
b. A reduction in back problems occurs as a result of sessions about strethching on a popular television show.
c. Medicare reduces the copayment for acupuncture from $20 to $10
d. The surgeon general issues a warning that back surgery is ineffetive
e. Medicare stops covering back surgery.
Ralph will consume any health care service just as long as its MB exceeds the money he must pay out of pocket. His insurance policy has a zero deductible and a 10 percent copay, so Ralph only has to pay 10 percent of the price charged for any medical procedure. Which of the following procedures will Ralph choose to consume?
a. An $800 eye exam that has an MB of $100 to Ralph.
b. A $90 hearing test that has an MB of $5 to Ralph.
c. A $35,000 knee surgery that has an MB of $3,000 to Ralph.
d. A $10,000 baldness treatment that has an MB of $16,000 to Ralph.
1.
An article in the Economist observes: "Insurance companies often suspect
the only people who buy insurance are the ones most likely to collect."
What do economists call the problem that is described in the article? If insurance
companies are correct in their suspicion, what are the consequences for the market for
insurance? Use health insurance as an example.
Chapter 7 Solutions
Principles of Microeconomics
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