In a Town with Only One Hospital,the Largest Employer (A

question 110

Multiple Choice

In a town with only one hospital,the largest employer (a local manufacturing plant) now offers health insurance to its employees.What would be the expected change to the price and quantity of medical services?

• A) Equilibrium price and quantity would not be affected.
• B) Equilibrium price and quantity would rise because supply and demand have decreased.
• C) Equilibrium price and quantity would fall because supply has decreased but demand has increased.
• D) Equilibrium price and quantity would rise because demand has increased but supply has remained constant.
• E) Equilibrium price would fall and quantity would rise because demand has decreased and supply has remained constant.

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Definitions:

Groupthink

A mental event happening among a group, where the need for unity or agreement leads to illogical or counterproductive choices in decision-making.

Self Image

The mental representation an individual has of themselves; includes how one perceives their appearance, abilities, and worth.

Attitudes

An individual's settled way of thinking or feeling about someone or something, typically reflected in their behavior.

Values

Deeply held beliefs or standards that individuals hold which guide their behavior and decision-making processes.