Congressional studies report that Medicare payments fall 11 percent below the cost of treating patients while private insurance patients pay 29 percent more than cost. This phenomenon is called
a. price discrimination.
b. theMedigap.
c. cost-shifting.
d. cost-plus pricing.
e. revenue enhancing.
Question 2
If an individual's housing purchases are always a constant fraction of income, then the income elasticity of demand for housing is
a. greater than one.
b. equal to one.
c. less than one.
d. Cannot be determined from the available information.
Any number of crossovers gives 50 percent recombinants
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