The price elasticity of demand for health care is such that an increase in the price of health care will:
A. decrease total health care expenditures.
B. increase total health care expenditures.
C. shift the demand for health care rightward.
D. shift the demand for health care leftward.
Answer: B
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In year 1 the CPI is 174, and in year 2 the CPI is 190. If Sarah's salary was $49,800 in year 1, what salary in year 2 would cause her to exactly "keep up with inflation"?
A) $34,004 B) $42,942 C) $40,508 D) $54,379
The idea that saving equals investment in the Solow model means that a steady state can be reached only when
A) s = k. B) s = n + d. C) sf(k) = (s + d)k. D) sf(k) = (n + d)k.
The freedom of consumers to cast their dollar votes to buy, or not to buy, at prices determined in competitive markets describes:
a. socialism. b. communism. c. consumer sovereignty. d. the aspirations of Karl Marx.
If fixed cost rises,
a. the profit maximizing level of output would decrease. b. the profit maximizing level of output would not change. c. marginal cost rises. d. variable cost falls.