The Figure Given Below Represents Demand for and Supply of Hospital

question 48

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

-According to Figure 18.3,given the existing demand for its beds,after the hospital completes its expansion it will maximize its occupancy rate by charging a price level:

• A)P₁.
• B)P₂.
• C)P₃.
• D)(P₁+ P₂)/2.
• E)P₃-P₁.

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Definitions:

Hyperbola

A type of smooth curve lying in a plane, defined by its geometric properties or by equations for which it is the solution set.

Asymptotes

Lines that a graph approaches but never touches, indicating behaviour towards infinity in functions or sequences.

Hyperbola

A type of smooth curve lying in a plane, defined as the difference of distances from any point on the curve to two fixed points (foci) being a constant.

Graph

A visual representation of data, functions, or a collection of points in a coordinate system.