The Figure Given Below Shows the Demand (D₁ and D₂)and

question 44

Multiple Choice

The figure given below shows the demand (D₁ and D₂) and supply (S) curves of medical care. Figure 18.1 Refer to Figure 18.1.One possible reason for the shift of the demand curve from D₁ to D₂ is the:

• A)increase in the cost of producing new drugs.
• B)restriction imposed by the government on the sale of new drugs.
• C)emergence of Medicare and Medicaid programs of the U.S.government.
• D)economies of scale experienced while producing medical care.
• E)decrease in the cost of producing medical care.

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