Use the Following to Answer Questions

question 97

Multiple Choice

Use the following to answer questions .
Exhibit: The Market for Health Care
-(Exhibit: The Market for Health Care) When the price of P₂ becomes available to the consumer because of insurance:

• A) health-care costs are now OP₃BQ₂, of which OP₃CQ₂ is paid by consumers and P₂P₃BQ₂ is paid by insurance.
• B) health-care costs are now OP₃BQ₂, of which P₂P₃BQ₂ is paid by consumers and OP₂CQ₂ is paid by insurance.
• C) the new quantity of health care is Q₂.
• D) the new quantity of health care is Q₁.

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