EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN: 9781337668279
Author: Henderson
Publisher: YUZU
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Chapter 13, Problem 5QAP
To determine
The economic aspects of price controls together with circumstances within which their intentions are fulfilled and otherwise.
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Suppose the government imposes a system of price ceilings in the health care industry as part of an overall health care reform bill.
a) what happens to the amount of market exchange ? b) explain the impact of the price ceiling on efficiency
c) who bears the cost of the regulation?
Discuss the kind of pressure the Health
Maintenance Organizations (HMO) exerted on
the price of drugs.
What would happen if, in order to provide lower cost healthcare, the government decided to set a price ceiling (Pmax) in the health insurance market?
Chapter 13 Solutions
EBK HEALTH ECONOMICS AND POLICY
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- which one of the following will not cause a shift in the medical care supply curve? 1. a change in the cost of medical school tuition 2. a change in the percentage of the population with health insurance 3. a change in the amount of student aid available to promising undergraduate students studying biology 4. a change in the number of high-profile medical malpractice lawsuits brought against physicians increasing the premiums on malpractice insurance 5. a wave of union activity that increases the average salaries of nurses nationwidearrow_forwardWhat would happen if, in order to provide lower cost health care, the government decided to set a price ceiling (Pmax) in the health insurance market? (Please answer questions a, b, and c below.) What is the effect of this maximum price legislation on the market for health insurance? Briefly explain the situation for both consumers and producers (i.e. health care providers). What might the government do to achieve their intended aims (i.e. lower costs and increased quantity)?arrow_forwardGovernment Intervention in Medical Markets Include which of the following? Price controls, Entry Restrictions or Tax Policy?arrow_forward
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