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

question 9

Multiple Choice

Refer to the table shown that depicts a third-party payer market. What is the cost of this program to the third-party if a $2 co-pay is established? $$\begin{array} { | c | c | c | } \hline \text { Price } & \text { Quantity Demanded } & \text { Quantity Supplied } \\\hline \$ 0 & 1,200 & 0 \\\hline \$ 1 & 600 & 150 \\\hline \$ 2 & 300 & 300 \\\hline \$ 3 & 0 & 450 \\\hline \$ 4 & 0 & 600 \\\hline \$ 5 & 0 & 750 \\\hline \$ 6 & 0 & 900 \\\hline \$ 7 & 0 & 1,050 \\\hline\end{array}$$

• A)$0
• B)$150
• C)$600
• D)$1,200

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Definitions:

Logical Strength

The extent to which the premises of an argument support its conclusion, influencing its capacity to persuade or convince logically.

Sound Argument

An argument that is both valid (correctly structured so that the conclusion logically follows from the premises) and has all true premises.

Bandwagon Fallacy

A logical error that concludes something is true, good, or desirable because many other people agree with it or are doing it.

Argument Sound

A quality of an argument wherein it is both valid and its premises are true, leading to a correct conclusion.