What is the relevance of the concepts of supply and demand, free market, and price sensitivity with regard to health care costs?
a. The undersupply of available health care has driven up costs.
b. In a free market, increased numbers of people are able to pay for health care.
c. Consumer insensitivity to costs has increased demand for health care services.
d. Third-party payers have demanded more health care services.
ANS: C
A
There is an oversupply of health care services, so costs should decrease.
B
In a free market, the consumption of health care services would be based on the individual's ability to pay.
C
Because more consumers have health insurance, they pay only a small portion of the cost and, therefore, request more services.
D
The demand for services has come from consumers not third-party payers.
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