The Figure Given Below Represents Demand for and Supply of Hospital

question 46

Multiple Choice

The figure given below represents demand for and supply of hospital beds in Anytown, U.S.A. , as shown by curves D and S₁ in the following figure.If the hospital receives permission to expand, its new supply curve will be S₂.Price level P₁ is the fixed prospective payment reimbursement rate paid by Medicare to the hospital, regardless of actual cost. Figure 32.3 Based on the information given in Figure 32.3, in order to increase its occupancy rate prior to the expansion, this hospital should:

• A)discourage comparison-shopping by prospective patients.
• B)give financial incentives to doctors without privileges to admit patients.
• C)increase the number of beds.
• D)eliminate its advertising budget.
• E)lower its price for certain cost-effective medical procedures.

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Definitions:

Birds And Mammals

Warm-blooded vertebrates; birds are characterized by feathers and beaks, while mammals are distinguished by fur or hair and mammary glands for milk production.

Organisms

Individual living entities that can react to stimuli, reproduce, grow, and maintain homeostasis.

Diastolic Pressure

Blood pressure when the left ventricle is most relaxed; lowest pressure of the cardiac cycle.

Mm Hg

Millimeters of mercury, a unit of pressure commonly used to measure blood pressure, atmospheric pressure, and other types of low pressure.