Question

1. Which of the following individuals and groups produce medical care?

A. A regional insurance company.
B. Nurses and doctors.
C. X-ray technician.
D. A state employee with government insurance.
E. A nursing home.
F. Ambulance manufacturers
2. As the number of medical care producers increases, the equilibrium price will surplus will_____. If demand remains the same, consumer surplus will______following the change in supply.

Answer 1

1. B. Nurses and doctors.

C. X-ray technician.

E. A nursing home.

2. Decrease; Increase

Step-by-step explanation:

1. To produce medical care means to have the capacity to give medical care and this is what doctors and nurses do. When you go to a hospital and they diagnose and recommend treatment, they are producing medical care. In Nursing homes this is also done as they have full time medical staff that provide health care to their clients so they are also considered producers of medical care.

An X-ray technician produces medical care by showing the parts of the body that may have been damaged.

2. If the number of medical care producers increase, the equilibrium price will go down because the shift in the supply curve to the right will intercept the demand curve for medical care at a lower point thereby decreasing equilibrium price.

Consumer surplus refers to the difference between the price that customers would have paid and the price they are paying so with the prices lower, consumers will see their surplus increase.