Refer to the Graph Shown That Depicts a Third-Party Payer

Multiple Choice

Refer to the graph shown that depicts a third-party payer market for prescription drugs. What happens to expenditures by consumers in this market if a $2 co-pay is established compared to a free-market equilibrium?

A) Expenditures fall by $30
B) Expenditures rise by $90
C) Expenditures fall by $120
D) Expenditures remain at $150