​Figure 52

question 9

Multiple Choice

​Figure 5.2. The figure shows the supply and demand curves of a firm.
-Which of the following helps in determining whether health care cost rises because of government policy, or because of demand rising faster than supply?​

• A)Examining the market for health care away from the belief that the market outcome is unfair
• B)​Examining the market for health care with the belief that the market outcome is unfair
• C)​Examining the allocation system
• D)​Examining the changes in the price of health care products
• E)​Examining the changes in the number of suppliers of health care in the market

---

Definitions:

Depreciation Cost

The systematic allocation of an asset's cost over its useful life to reflect the loss in value over time.

Plant Asset

Long-term tangible assets that are used in the production of goods and services, including machinery, buildings, and equipment.

Depreciable Cost

The total amount that can be depreciated over the life of an asset, typically the asset's cost minus its salvage value.

Salvage Value

The foreseen redemption value of an asset after its period of usability concludes.