Exam 1: An Introduction to the Economics of Medical Care

Let the demand for physician visits have the following demand curve function, where p is price and Q_d is quantity demand.Find the elasticity of demand at a price of $100.

Which of the following will not increase the demand for medical services?

Suppose you are considering becoming a physician.Your current job has an annual salary of $100,000,but you hate your job.If offered a job as a physician for $90,000 you would be indifferent between your current job and this new job.What is your opportunity cost of staying at your job?

Supply curves are upward sloping because of

In the graph above, the market for physician office visits is initially in equilibrium at point A. There is a dramatic increase in the number of physicians, which leads to

Suppose the government institutes new regulations on physicians requiring physicians to take additional years of training before practicing medicine.What will happen to the wages and quantity of physicians?

Suppose you were hired to help a hospital set prices for a typical inpatient day.In this market,the hospital is a monopolist.The hospital faces a downward sloping demand curve where the inverse demand curve is ,the marginal revenue curve is equal to ,and marginal cost is constant at MC = $100 per day.What is the equilibrium price,quantity,and profit?

There are two types of stents,coil and mesh,used when performing coronary angioplasty.These two stents are substitutes.If the price of coil stents increases,then

If the supply of registered nurses is Q_S = 40w and the demand for registered nurses is Q_d = 1000 - 10w,find the equilibrium hourly wage (w)the quantity of nurses.Next,find the equilibrium hourly wage the quantity if there is a minimum wage equal to $40.

In a competitive market,firms will continue to produce until marginal cost is equal to

-In the graph above,the opportunity cost in defense dollars associated with moving toward more medical expenditures is

-In the graph above,point A is

-In the graph above,the equilibrium price is regulated to equal P*.This price is a

Suppose the federal government will no longer provide financial support to hospitals (causing some public hospitals to close),but will instead give that money directly to taxpayers in the form of a tax credit on medical expenditures.What will happen to the equilibrium price and the quantity of physician office visits?

-In the graph above,which point is not attainable?

-In the graph above,point D is

Demand curves are downward sloping because of

Compare and contrast Medicare and Medicaid.

Suppose the demand for Lipitor is equal to and the supply function for Lipitor is .Find the equilibrium price and quantity.

-In the graph above,what is the opportunity cost in defense dollars associated with moving from point A to point B.