If the Supply of Health-Care Services Is Highly Inelastic and Larger

question 223

Multiple Choice

If the supply of health-care services is highly inelastic and larger government subsidies lead to an increase in the demand for the services,

• A) the prices of health-care services will rise by only a small amount, but the quantity supplied will increase substantially.
• B) the prices of health-care services will rise substantially, but the quantity supplied will increase by only a small amount.
• C) both health-care prices and the quantity of the services supplied will increase substantially.
• D) the prices of health-care services will decline, but there will be only a small change in the quantity supplied.

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Definitions:

Piaget's Theory

A theory of cognitive development that describes how children construct a mental model of the world, developed by Jean Piaget.

Problem Presentation

The manner in which a problem is laid out or disclosed to someone, influencing their understanding and method of solving it.

Deductive Reasoning

Deductive reasoning is a logical process in which a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Object Permanence

The realization that items persist in existence even when they are not visible, audible, or perceptible in any way.