Which of the following would cause the equilibrium price of apple ...

[haleyc112]

Which of the following would cause the equilibrium price of apple juice to decrease and the equilibrium quantity of apple juice to increase?
 
  A) a decrease in the price of apples
  B) an increase in the price of orange juice, a substitute for apple juice
  C) an increase in the price of apples
  D) a decrease in the price of granola bars, a complement for apple juice

Question 2

Refer to Figure 7-6. Answer the following questions:
 
  1. What would be the equilibrium price and quantity if consumers had to pay the full price of medical services?
  2. With insurance acting as a third-party payer, what price will consumers pay for medical service?
  3. With insurance acting as a third-party payer, what price will doctors receive for medical service?
  4. With insurance acting as a third-party payer, what will be the equilibrium quantity of medical services?
  5. With insurance acting as a third-party payer, what will be the value of the deadweight loss?

[juiceman1987]

Answer to Question 1

A

Answer to Question 2

1. 50; 400
2. 25
3. 70
4. 600
5. 4,500

[haleyc112]

Thanks for the timely response, appreciate it

[peter]

Excellent