If the Demand for Health Care Is Elastic and Health

question 146

Multiple Choice

If the demand for health care is elastic and health care co-payments are lowered, the percentage change in the quantity demanded of health care will be _______________ than the percentage decrease in co-payments, and the total dollar amount spent on health care will ___________.

• A)greater; rise
• B)less; rise
• C)greater; fall
• D)less; fall

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Definitions:

Accounting System

A systematic process of recording, summarizing, and analyzing an organization's financial transactions, often facilitated by software.

Accounts Payable Subsidiary Ledger

A detailed ledger containing all individual creditor accounts, supporting the main accounts payable account by listing individual transactions.

Purchases Journal

A specialized accounting journal used to record all purchasing transactions, particularly on account.

Record Purchase

The accounting process of recording the buying of goods or services in the financial records of a company.