Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office
A) they demand a larger quantity of health care services than they would if they paid a price that better represented the true cost of providing the service.
B) the insurance companies provide a larger quantity of health care services than they would if the consumer paid a price that better represented the true cost of providing the service.
C) the doctors supply a smaller quantity of health care services than they would if the consumer paid a price that better represented the true cost of providing the service.
D) they demand a smaller quantity of health care services than they would if they paid a price that better represented the true cost of providing the service.
Question 2
The price elasticity of supply for umbrellas is 2. Suppose you're told that following a price increase, quantity supplied increased by 30 percent. What was the percentage change in price that brought this about?
A) 15 percent
B) 60 percent
C) 6.7 percent
D) impossible to determine without additional information
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