Refer to the Graph Shown That Depicts a Third-Party Payer

question 24

Multiple Choice

Refer to the graph shown that depicts a third-party payer market for prescription drugs. What happens to expenditures by consumers in this market if a $2 co-pay is established compared to a free-market equilibrium?

• A)Expenditures fall by $30
• B)Expenditures rise by $90
• C)Expenditures fall by $120
• D)Expenditures remain at $150

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Definitions:

Esteem Needs

Part of Maslow's hierarchy of needs, referring to the need for respect, self-esteem, and recognition from others.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that comprises a five-tier model of human needs, depicted as hierarchical levels within a pyramid; from the bottom of the hierarchy upwards, the needs are: physiological, safety, love and belonging, esteem, and self-actualization.

Recognition

The acknowledgment or appreciation of someone's effort, achievements, or status.

Motivated Sequence

A method of organizing persuasive speeches aimed at eliciting a desired response from the audience, typically involving steps such as attention, need, satisfaction, visualization, and action.