Which of the Following Would Lead to an Increase in the Demand

question 85

Multiple Choice

Which of the following would lead to an increase in the demand for health care?

• A) Physicians' productivity increases.
• B) Medicare subsidies are lowered.
• C) The average population age increases.
• D) Subsidies for Medicare are reduced.

---

Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future business decisions.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Incremental Revenues

Additional revenue generated from a specific action or decision, comparing the difference in total revenue with and without the action.

Incremental Revenues

Additional income generated from a particular business decision or activity, beyond the existing baseline revenue.