If More Insurance Companies Decide to Cover Part of the Price

question 69

Multiple Choice

If more insurance companies decide to cover part of the price of elective laser eye surgery and more doctors decide to enter the field of laser eye surgery, what will happen in the market for laser eye surgery as a result of these two factors?

• A)Demand will increase and prices will rise.
• B)Supply will increase and prices will fall.
• C)Demand and supply will both increase and prices may rise or fall.
• D)Demand will increase and supply will decrease and prices will rise.

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Definitions:

Balance Sheet Accounts

Accounts that reflect the assets, liabilities, and shareholders' equity of a company at a particular point in time.

Real Accounts

Accounts related to assets, liabilities, and equity that are not closed at the end of the accounting period, as opposed to nominal accounts.

Accumulated

The total amount collected or gathered over a period, often referring to earnings, benefits, or other financial measures.

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.