Suppose that there is no third-party payer in the medical care market in Uganda in 1955. Suppose that in 1960, health insurance companies begin operations in Uganda. All else being equal, what does supply and demand analysis predict will happen in the medical care market in 1960

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24-06-2021
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Suppose that there is no third-party payer in the medical care market in Uganda in 1955. Suppose that in 1960, health insurance companies begin operations in Uganda. All else being equal, what does supply and demand analysis predict will happen in the medical care market in 1960

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Parrain Parrain · Answer 1 · 2021-06-26T03:05:00+02:00

Answer: b. Total expenditures will increase

Explanation:

Medical insurance reduces the amount that people have to pay to get health related services. Ugandans from the year 1960 can be expected to pay less for medical services as a result.

If people are able to pay less for a good or service, the normal thing that they would do would be to demand more of that good and service because it is more affordable. Total expenditure in the medical field will increase as a result.