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Any Factor That Shifts the Supply Curve Inward and to the Left

question 197

True/False

Any factor that shifts the supply curve inward and to the left and does not affect the demand curve will raise the equilibrium price and reduce the equilibrium quantity.


Definitions:

Defensive Medicine

The practice by healthcare providers of ordering tests, procedures, or visits, or avoiding certain high-risk patients or procedures, primarily to avoid litigation, rather than to benefit the patient's health.

Medical Lawsuits

Medical lawsuits involve legal actions taken against medical practitioners or healthcare organizations due to negligence, malpractice, or failure to provide the expected standard of care.

Allocative Inefficiency

A situation where resources are not allocated in the most efficient manner, leading to a loss in potential economic welfare or output.

Managed-Care Systems

Health care delivery systems designed to manage cost, utilization, and quality, often using a network of doctors and providers to ensure care is delivered efficiently.

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