Assume That the Price-Consumption Curve Is Horizontal

question 49

Essay

Assume that the price-consumption curve is horizontal. What additional information does that tell you about the demand for good X and the amount people spend on it?

---

Definitions:

Insurance Exchanges

Marketplaces established to facilitate the purchase of health insurance in accordance with the rules of the Affordable Care Act.

Foster Competition

Encourages or promotes a competitive environment within a market, leading to benefits such as innovation and lower prices.

Insurance Companies

Financial institutions that provide coverage against specified losses in exchange for premium payments.

Deductibles

The amount policyholders must pay out of pocket before an insurance company will cover the remaining costs of a claim.