What would be the equilibrium level and price of health care

Assignment Help Microeconomics
Reference no: EM13950305

1. Describe the health care industry. What are the two major problems facing the health care system?

2. What are the two major parts of the Medicare program? What is Medicaid?

3. What are the economic implications of rising health care costs? What are three effects on labor markets of rising health care costs?

4. Below is a table with data on the supply and demand of health care. Use this information to answer the following questions.

Price

Qd

Qs

$10,000

400

1200

9,000

500

1100

8,000

600

1000

7,000

700

900

6,000

800

800

5,000

900

700

4,000

1000

600

3,000

1100

(a) Assume initially there is no health insurance. What would be the equilibrium level and price of health care?

(b) Suppose the introduction of health insurance decreased medical costs by one half. What would be the new price and quantity of health care? What would be the marginal cost and marginal benefit at this output?

(c)Suppose that the government decided to subsidize the cost of medical school. How would this change the supply and demand situation of the health care market?

(d) Suppose the government subsidy causes the supply of health care to shift by 200 at every price? What would be the new equilibrium price and quantity in the absence of insurance? What would be the marginal benefit and marginal cost if insurance coverage of 50% were in place?

(e) Suppose that doctors shift away from a fee-per-visit system and are instead paid set annual salaries. What effect will this have on the supply and demand situation for the health care market?

(f) Given the supply condition in (d), suppose the shift in policy causes health care demand to shift down by 200 at every price. What is the new equilibrium price and quantity? What is the marginal benefit and cost if 50% insurance coverage were in place?

(g) How have the previous policies influenced the impact of the 50% insurance policy?

Reference no: EM13950305

Questions Cloud

What is after-tax cost of preferred stock if firm tax rate : A firm is paying an annual dividend of $6.00 for its preferred stock which is selling for $62.00. There is a selling cost of $3.00. What is the after-tax cost of preferred stock if the firm's tax rate is 38%?
Thinking about purchasing a new clam maker : Honey Bee is thinking about purchasing a new clam maker for $14,000. The expected net cash flows resulting from the digger are $9,000 in year 1, $7,000 in the 2nd year, $5,000 in the 3rd year, and $3,000 in the 4th year. Assuming that the cost of cap..
Informs you of the major findings of the study : Read the abstract. The abstract informs you of the major findings of the study, and the importance. What is the big picture of the study (this is done as you read the article)
The expected net cash flows resulting from the digger : Bumble Bee is thinking about purchasing a new clam digger for $14,000. The expected net cash flows resulting from the digger are $9,000 in year 1, $7,000 in the 2nd year, $5,000 in the 3rd year, and $3,000 in the 4th year. Should Bumble Bee purchase ..
What would be the equilibrium level and price of health care : Given the supply condition in (d), suppose the shift in policy causes health care demand to shift down by 200 at every price. What is the new equilibrium price and quantity? What is the marginal benefit and cost if 50% insurance coverage were in p..
Heat transfer between the device : Saturated water vapor at 2308F is sprayed into the moist air, which then exits the device at a relative humidity of 50%. Heat transfer between the device and its surroundings can be ignored, as can kinetic and potential energy effects.
Coupon bond-pays interest annually is selling at par value : A coupon bond that pays interest annually is selling at par value of $1,000, matures in five years, and has a coupon rate of 9%. The yield to maturity on this bond is :
Analyzes the proposed restructuring against the goals set : Atoyo  Fabricating,  Inc., has not been able to service its debts adequately. Prepare a schedule that analyzes the proposed restructuring against the goals set by management.
Create a role for user to complete imports & exports of data : Use the DTS utility to Import the data from the text file into your SQL Server database. Show screen shots of the import steps and provide a screen shot of the table rows in the Enterprise Manager once the data is imported.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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