Impact of substitution of third-party payment in demand and price.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter ST7, Problem 1CQ

To determine

Impact of substitution of third-party payment in demand and price.

Expert Solution & Answer

Explanation of Solution

The insurance companies provide third-party insurance, and government provides out-of-pocket payments to the medical care to the consumers for their well-being. When government or insurance company pays for health care, it will result in increasing demand for the service. This in turn increases the price of medical service. One of the major reason for the increase in price is the inelastic supply of medical service. Because if the service becomes perfectly inelastic, the suppliers of medical service receive benefit from that and even the subsidy or payment benefit is received by the consumer. Besides this, the third-party payment will reduce the economization of people because the suppliers provide most value to the service and which in turn will attract the consumers, and they pay without being concerned about the price.

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!

Students have asked these similar questions

General Accounting Question solution and give me Blank ? C

It is possible to use transformational leadership strategies to reach unethical objectives. Traditional leadership theories and morals standards are not adequate to help employees solve complex organizational issues. For the statement above, argue in position for both in favor or opposed to the statements.

Discuss the preferred deterrent method employed by the Zambian government to combat tax evasion, monetary fines. As noted in the reading the potential penalty for corporate tax evasion is a fine of 52.5% of the amount evaded plus interest assessed at 5% annually along with a possibility of jail time. In general, monetary fines as a deterrent are preferred to blacklisting of company directors, revoking business operation licenses, or calling for prison sentences. Do you agree with this preference? Should companies that are guilty of tax evasion face something more severe than a monetary fine? Something less severe? Should the fine and interest amount be set at a different rate? If so at why? Provide support and rationale for your responses.

Answer 2

Question

Chapter ST7, Problem 1CQ

To determine

Impact of substitution of third-party payment in demand and price.

Expert Solution & Answer

Explanation of Solution

The insurance companies provide third-party insurance, and government provides out-of-pocket payments to the medical care to the consumers for their well-being. When government or insurance company pays for health care, it will result in increasing demand for the service. This in turn increases the price of medical service. One of the major reason for the increase in price is the inelastic supply of medical service. Because if the service becomes perfectly inelastic, the suppliers of medical service receive benefit from that and even the subsidy or payment benefit is received by the consumer. Besides this, the third-party payment will reduce the economization of people because the suppliers provide most value to the service and which in turn will attract the consumers, and they pay without being concerned about the price.

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 3

Question

Chapter ST7, Problem 1CQ

To determine

Impact of substitution of third-party payment in demand and price.

Expert Solution & Answer

Explanation of Solution

The insurance companies provide third-party insurance, and government provides out-of-pocket payments to the medical care to the consumers for their well-being. When government or insurance company pays for health care, it will result in increasing demand for the service. This in turn increases the price of medical service. One of the major reason for the increase in price is the inelastic supply of medical service. Because if the service becomes perfectly inelastic, the suppliers of medical service receive benefit from that and even the subsidy or payment benefit is received by the consumer. Besides this, the third-party payment will reduce the economization of people because the suppliers provide most value to the service and which in turn will attract the consumers, and they pay without being concerned about the price.

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 4

Question

Chapter ST7, Problem 1CQ

To determine

Impact of substitution of third-party payment in demand and price.

Expert Solution & Answer

Explanation of Solution

The insurance companies provide third-party insurance, and government provides out-of-pocket payments to the medical care to the consumers for their well-being. When government or insurance company pays for health care, it will result in increasing demand for the service. This in turn increases the price of medical service. One of the major reason for the increase in price is the inelastic supply of medical service. Because if the service becomes perfectly inelastic, the suppliers of medical service receive benefit from that and even the subsidy or payment benefit is received by the consumer. Besides this, the third-party payment will reduce the economization of people because the suppliers provide most value to the service and which in turn will attract the consumers, and they pay without being concerned about the price.

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 ST7, Problem 1CQ

To determine

Impact of substitution of third-party payment in demand and price.

Expert Solution & Answer

Explanation of Solution

The insurance companies provide third-party insurance, and government provides out-of-pocket payments to the medical care to the consumers for their well-being. When government or insurance company pays for health care, it will result in increasing demand for the service. This in turn increases the price of medical service. One of the major reason for the increase in price is the inelastic supply of medical service. Because if the service becomes perfectly inelastic, the suppliers of medical service receive benefit from that and even the subsidy or payment benefit is received by the consumer. Besides this, the third-party payment will reduce the economization of people because the suppliers provide most value to the service and which in turn will attract the consumers, and they pay without being concerned about the price.

Answer 6

Chapter ST7, Problem 1CQ

To determine

Impact of substitution of third-party payment in demand and price.

Expert Solution & Answer

Explanation of Solution

The insurance companies provide third-party insurance, and government provides out-of-pocket payments to the medical care to the consumers for their well-being. When government or insurance company pays for health care, it will result in increasing demand for the service. This in turn increases the price of medical service. One of the major reason for the increase in price is the inelastic supply of medical service. Because if the service becomes perfectly inelastic, the suppliers of medical service receive benefit from that and even the subsidy or payment benefit is received by the consumer. Besides this, the third-party payment will reduce the economization of people because the suppliers provide most value to the service and which in turn will attract the consumers, and they pay without being concerned about the price.

Answer 7

Chapter ST7, Problem 1CQ

To determine

Impact of substitution of third-party payment in demand and price.

Answer 8

Expert Solution & Answer

Explanation of Solution

The insurance companies provide third-party insurance, and government provides out-of-pocket payments to the medical care to the consumers for their well-being. When government or insurance company pays for health care, it will result in increasing demand for the service. This in turn increases the price of medical service. One of the major reason for the increase in price is the inelastic supply of medical service. Because if the service becomes perfectly inelastic, the suppliers of medical service receive benefit from that and even the subsidy or payment benefit is received by the consumer. Besides this, the third-party payment will reduce the economization of people because the suppliers provide most value to the service and which in turn will attract the consumers, and they pay without being concerned about the price.