What are intended and unintended consequences

Assignment Help Business Economics

Reference no: EM13996845

Imagine a community with only one insurance company that provides coverage to everyone in that community (a universal/single pay or insurer). Currently, the payer does not pay anything for physician office visits. However, bowing to intense lobbying pressure, insurance will pay 80% of the cost of these visits effective January 1, while the patients will be responsible for 20%. Describe the likely effect on demand curves for office visits to a physician as a result. What are intended and unintended consequences and what do you suppose will be the intended and unintended consequences will be?

Reference no: EM13996845

Questions Cloud

Perfectly competitive firm : Pete’s Pie Shop is a perfectly competitive firm. If the total output of pies in Pete’s Pie Shop increases from 20 per hour to 30 per hour as he hires the second worker, then. Every time Pete makes another pie in his shop, he uses $1.20 worth of pastr..

What price did the student sell the gatorade for : A faculty member sells Gatorade at UNC Charlotte football games. He finds that if he raises his selling price by $1, he sells 5 less bottles each week. He turns over the operation to a Managerial Economics student for a week. What price did the stude..

What is the amount of money the local bank can lend : Meagan deposits $750 from her piggy bank into her checking account at Regions National Bank. The reserve requirement is 10% and the bank has no excess reserves. What is the immediate effect on the M1 measure of the money supply of her deposit? Explai..

Markets failures and exceptions : Firm A produces cement sifters. The process includes the melting of metals and chemicals which give the sifters strength. In the production process, waste is produced and released into the river that runs alongside of the plant. ome states allow stud..

What are intended and unintended consequences : Imagine a community with only one insurance company that provides coverage to everyone in that community (a universal/single pay or insurer). Currently, the payer does not pay anything for physician office visits. What are intended and unintended con..

What ticket price would maximize revenue per game : The Kannapolis Intimidators price their tickets at $12 and average 1,600 tickets sold per game. Then they reduce their ticket price to $6, and then 2,800 tickets per game are sold. Assuming a linear demand curve, what ticket price would maximize reve..

What could you do to protect that long term profit stream : Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm. Describe the busi..

Draw a correctly labeled loanable funds graph : Draw a correctly labeled loanable funds graph that shows what happens to real interest rates for each of the following situations:

What is disintermediation and infomediary : 1. What is disintermediation? Give an example. 2. What is an infomediary? Give an example. 3. How does the value of distribution channel functions change when they become Internet based? 4 Is it better to regulate industry via laws or let industry se..

User Account

All Pages