All Else Equal, the Amount of Waste Caused by Full

question 99

Multiple Choice

All else equal, the amount of waste caused by full health insurance is:

• A)larger the lower is the price elasticity of demand for medical services.
• B)larger the higher is the price elasticity of demand for medical services.
• C)larger the lower is the price elasticity of supply for medical services.
• D)smaller the higher is the price of medical services.

---

Definitions:

Terminally Ill

A condition in which a disease cannot be cured or adequately treated and is reasonably expected to result in death of the patient.

HIV

Human Immunodeficiency Virus, a virus that attacks the immune system and can lead to AIDS.

Condoms

Barrier devices used during sexual activity to reduce the likelihood of pregnancy and the transmission of sexually transmitted infections (STIs).

Physiology of Diabetes

The study of the bodily functions and mechanisms involved in the disease diabetes, which affects glucose metabolism.