The market demand for medical checkups per day, O, is Q=25(200-PF), where pe represents the price of a checku The market demand for the number of dental checkups per day. Qr, is Q=30(50-Pr), where p, represents the price of a dental checkup. The market supply of medical checkups is QF=60pp-10PT The market supply of dentists is Q=60p -20PF- The supplies are linked because people decide whether to be doctors and dentists on the basis of relative earnings. The quantity supplied of medical checkups depends on the price of dental checkups. What does the supply function property imply about the effect of price changes? As py increases, more people become doctors and fewer people become dentists. Similarly, as pr increases, fewer people become doctors and more people become dentists What are the equilibrium prices? (Enter numeric all responses using real numbers rounded to two decimal places) The equilibrium prices are $71.00 for medical checkups and $32.5 for dental checkups

Most systems of medical insurance substantially lower the out-of-pocket costs consumers have to pay for additional units of physician services and hospitalization. Some reduce these costs to zero. How does this method of payment affect the consumption levels of medical services?Might this method of organization result in “too much” consumption of medical services?

How would each of the following changes affect the demand curve for acupucture? 1) The surgeon general issues a warning that back surgery is ineffective. 2) Medicare stops covering back surgery.

is now time to test your mastery of supply and demand. Consider the market for hospital services. Use a graph similar to the one in Figure 3.5: Label the vertical axis “Price of Hospital Services” and the horizontal axis “Quantity of Hospital Services.” Draw the supply and demand curves, and identify the equilibrium price and the quantity of hospital services. Now suppose that due to a nursing shortage, the average nurse’s salary increases 10 percent. What effect will this increased cost have on the market for hospital services? How will the increase in the average nurse's salary affect the supply or demand curve in the market for hospital services, and in which directio

The Doug’s Delicious Diner faces a demand curve for its daily special in which there are an equal number of potential buyers at every $0.20 price point between $8.00 and $6.00. If the marginal cost is $6.35, what price maximizes profits? Doug notices that at this price the unserved portion of demand are all senior citizens. If it offered a senior discount, how much should it be?

Suppose the demand for Apples is given by QA = 100 -4 PA and the current market price is 11. What is the compensating variation associated with a loss of access to the apple market at the initial price of 117 Assume demand remains constant What is the compensating variation associated with the increase in price from 11 to 227 Assume demand remains constant.

Theory and Evidence. Childcare is a sector that is heavily regulated because of the importance of ensuring child safety. The current price of childcare is $1200 a month. The government is concerned with this market: Evidence shows that young parents are not returning to work because they cannot afford childcare. The government conducts a randomized control trial of a new policy. In some randomly selected cities, the government mandates that childcare providers cannot charge more than $800 per month. Other randomly selected cities are left unaffected to serve as a control. In six months, the outcomes show that the number of children getting childcare has not changed, but that waiting lists for childcare have increased dramatically. (a) Can this outcome be reconciled with the theory of supply and demand? (b) Do you expect that outcomes will improve in the long run?

Answer plzz

Demand for medical services is price inelastic (Absolute value of price elasticity of demand is less than 1 and greater than zero). Medical services are different from most other goods and services in that the person who determines the demand (the patient) is not the person who makes the payment (payment is made by the insurance company). How does this affect the price elasticity of demand for medical services (increase it or decrease it)? You may assume that this question only refers to people who have health insurance. Ignore co-payments and deductibles and any other out-of-pocket expenses. Please give an explanation.

Should the FDA consider economic factors in new drug approvals?