Explain what the Marshall-Lerner condition represents

Suppose that there are two countries, Beta and Gamma. Suppose further that everyone in country Beta is on Insurance B and everyone in country Gamma is on Insurance G. Suppose further that both governments use government-set price controls. In 2005, country Beta decided to change the reimbursement rate for pharmaceuticals,  but country Gamma did not make this change. You, a researcher, want to study the effect of offering coverage for this drug had an impact on health expenditures. You have average health expenditures for State Beta and Gamma prior to 2005 and post-2005.  Using your finding from the question above, you can infer that country Beta likely _____ reimbursement rates for pharmaceutical drugs. State Time Periods Pre-2005 Post-2005 State Beta $1000 $1400 State Gamma $1500 $1700 a. lower b. did not change c. raised

For a single illness (such as a sore throat and cough), show the demand curves for three different consumers with different preferences about medical care and other goods. Need the demand curves be parallel? Could they ever cross? Now aggregate those three demand curves into a demand curve for them together. If these three people constitute the entire population in a market area, then this demand curve is the "market" demand curve. Think about what would happen when you aggregated the demand curves of thousands of individuals.

The Beveridge model in the United Kingdom uses queues or waiting lists to ration care, rather than prices.