The Figure Given Below Represents Demand for and Supply of Hospital

question 4

Multiple Choice

The figure given below represents demand for and supply of hospital beds in Anytown,U.S.A.,as shown by curves D and S₁ in the following figure.If the hospital receives permission to expand,its new supply curve will be S₂.Price level P₁ is the fixed prospective payment reimbursement rate paid by Medicare to the hospital,regardless of actual cost. Figure 18.3

-Based on the information given in Figure 18.3,in order to increase its occupancy rate prior to the expansion,this hospital should:

• A)discourage comparison-shopping by prospective patients.
• B)give financial incentives to doctors without privileges to admit patients.
• C)increase the number of beds.
• D)eliminate its advertising budget.
• E)lower its price for certain cost-effective medical procedures.

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Definitions:

Texture Gradient

A depth cue based on the gradual reduction of detail that occurs in surfaces as they recede from the observer, used in perception to judge distances.

Brightness

The attribute of visual perception according to which an area appears to emit more or less light.

Perceptual Illusion

A misinterpretation of a true sensation, where the perceived information differs from the objective reality.

Physical Illusion

A misinterpretation of a real external stimulus, often leading to a distorted perception of reality.