Tools of supply and demand

Assignment Help Macroeconomics
Reference no: EM131372921

The market for health care services can be examined using the tools of supply and demand. In this market, the quantity variable is hours of health care services. Consumers' demand health care services while doctors (or others) supply health care services. We will assume health care services are all of the same quality (so 1 hour of heath care service A is the same as 1 hour of health care service B). The market price is the price per hour of health care services (dollars per hour). Given this, suppose a law mandates that doctors cannot charge a price higher than Pmax, where this maximum price is set below the free market equilibrium price in this market. What will be the effect this law on the quantity demanded, quantity supplied and price paid for health care services? Who benefits and who loses from imposing this maximum price that sellers can charge/receive for health care services? (Note: given the price actually paid by consumers for health care must equate supply and demand. This price can include both monetary forms of payment and non-monetary forms of payment; in this example, what forms might such non-monetary payments take? That is, if health care must be "rationed" among consumers).

Reference no: EM131372921

Questions Cloud

Dependent upon international channel members : Marketers can be very dependent upon international channel members for the success of their products overseas. Is this good or bad thing or perhaps both? Discuss the key undertakings that need to be addressed when moving a project from project phase ..
Fundamental value in the indefinite horizon : Same question as in part a, but where the dividend could take on one of three values, (0,6,12) with equal probability) What is different about the fundamental value in the indefinite horizon case as compared with the finite horizon case studied in ..
Discuss the advantages of compulsory income management : Discuss the advantages and disadvantages of compulsory income management and critically evaluate its effectiveness.With reference to the recommended readings, Discuss the advantages and disadvantages of compulsory income management and critically ..
How much money will be in account at the end of time period : You have decided to place $792 in equal deposits every month at the beginning of the month into a savings account earning 5.47 percent per year, compounded monthly for the next 4 years. How much money will be in the account at the end of that time ..
Tools of supply and demand : The market for health care services can be examined using the tools of supply and demand. In this market, the quantity variable is hours of health care services.
Explain pierces essay on animal ethics and evaluate argument : Is it morally permissible to eat meat or own a pet? In this essay present and explain Pierce's essays on animal ethics and then evaluate that argument.
How much will each annual payment be : This loan is to be repaid in equal annual installments at the end of each year over the next 7 years. How much will each annual payment be?
Analyze the different-overlapping general roles of physician : Analyze the different and overlapping general roles of physicians and nurses as they apply to professional credentialing and subsequent patient safety and satisfaction.Determine the major ways in which these overlapping roles may help play a part ..
Extent of creative destruction : Is the extent of creative destruction likely to differ across industries? Can the risk of creative destruction be incorporated into a five- forces analysis of an industry?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Explain how policy would impact potential gdp

Economic growth has increased in the past few months in the United States and driven by a surging stock market and increased confidence in the global economy, Canadians have increased optimism about the future of economic growth.

  How to use ad-as analysis to show two impacts on real gdp

In early 2001 investment spending sharply declined in the United States. In the 2 months following the September 11, 2001, attacks on the United States, consumption also declined. Use AD-AS analysis to show the two impacts on real GDP.

  Do you find it appropriate for supreme court to interpret

The Supreme Court Justices are appointed by the president and approved by the Senate. Now that we understand how the justices are elected, and the perks and downfalls to their undemocratic election, do you find it appropriate for the Supreme Court..

  What are the betas of the two stocks

What is the expected rate of return on each stock if the market return is equally likely to be 5% or 20%? c. If the T-bill rate is 8%, and the market return is equally likely to be 5% or 20%, draw the SML for this economy. d. Plot the two securitie..

  What problems would you expect if the country were to employ

The functional finance approach to budget deficits would set the federal budget to promote an economy operating at potential output. What problems would you expect if the country were to employ this kind of budgetary philosophy

  Marginal social cost of engaging

Alexander is willing to pay for such research. Vanessa's marginal private benefit from such research is given by the equation P= 100 -Q.The marginal social cost of engaging in such research is constant at $100. Reference: Ref 17-15

  Explain the gap between developed and developing countries

Explain the gap between developed and developing countries in terms of Income and wealth inequality. The authors explain that these three theories are useless to explain this gap.

  Should the government set a goal of reducing marginal cost

Explain the difference between fixed production technology and variable technology. Should the government set a goal of reducing the marginal social cost of pollution to zero in industries with fixed-production technology.

  Explain the fiscal policy of united states

At present political campaigns, taxes and budget policy were key issues. White House budget packages are often created to stimulate economic growth.

  Second-price sealed-bid auction

A seller uses a second-price sealed-bid auction to sell a painting to two bidders. The seller claims that the painting was drawn by a famous painter, say Monet. Both bidders are not sure about the seller's claim

  Find effective rate of protection for canadas steel industry

Canada's nominal tariff rates for importing these goods are 20 percent for steel and 10 percent for taconite. Given this information, calculate the effective rate of protection for Canada's steel industry. e=(n-ab)/(1-a)

  Finding optimal weekly output and price of firm

Find out the optimal weekly output and price of this firm. Find out the weekly profit from the production and sale of this product.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd