What Is the Relevance of the Concepts of Supply and Demand,free

question 21

Multiple Choice

What is the relevance of the concepts of supply and demand,free market,and price sensitivity with regard to health care costs?

• A) The undersupply of available health care has driven up costs.
• B) In a free market, increased numbers of people are able to pay for health care.
• C) Consumer insensitivity to costs has increased demand for health care services.
• D) Third-party payers have demanded more health care services.

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Definitions:

Expected Return

Expected return is the anticipated amount of profit or loss an investment is predicted to generate, accounting for the probability of different outcomes.

Financial Plan

Document that specifies the funds needed by a company for a period of time, the timing of inflows and outflows, and the most appropriate sources and uses of funds.

Inflows

The movement of resources, such as money or goods, into a system, organization, or area.

Outflows

The movement of money out of a business or financial account, typically relating to expenses or investments.