Which of the Following Is NOT Correct Regarding Why Health

question 16

Multiple Choice

Which of the following is NOT correct regarding why Health Care costs so much?

• A) The use of sophisticated and expensive technologies.
• B) Victims of accidents and crimes require fewer emergency medical services than in the past.
• C) Regulations that shift costs instead of reducing costs.
• D) Duplication of tests.
• E) Limited competition and restrictive work rules in the health care delivery system.

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Definitions:

Price Elasticity

The measure of how much the quantity demanded of a good or service changes in response to a change in its price.

Demand

Pertains to the amount of a good or service that buyers are prepared and capable of buying at different price levels over a specified time frame.

Price Discrimination

The strategy of selling the same product at different prices to different customers, based on willingness to pay, without corresponding cost differences.

Price Discrimination Strategy

A pricing strategy where a company sells the same product to different buyers at different prices, based on what the seller believes each customer is willing to pay.