The Figure Below Shows Ava's Demand Curve for Days in the Hospital

question 31

Multiple Choice

The figure below shows Ava's demand curve for days in the hospital. The marginal cost of an additional day in the hospital is $200. If Ava had first-dollar medical insurance, then she would choose to stay ______ day(s) in the hospital.

• A)4
• B)1
• C)2

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Definitions:

Necessary Item

Essential goods or services required for individuals to maintain their living standard or for businesses to operate efficiently.

Disaffirm

To officially reject, deny, or revoke a statement or agreement, especially in the context of contracts by minors or under conditions of misrepresentation.

Undue Hardship

A situation where accommodations or changes, typically required by law, would result in significant difficulty or expense for an employer or institution.

Right of Disaffirmation

A legal right allowing minors to void contracts they have entered into, based on their incapacity to fully understand the terms.