Economic Theory Indicates That as a Larger Share of Medical

Multiple Choice

Economic theory indicates that as a larger share of medical services are paid for by a third party (for example, insurance companies or the government) rather than directly by the consumer,

A) consumers will have a stronger incentive to economize.
B) consumers will have a weaker incentive to economize and the prices of medical services will rise more rapidly than would otherwise be the case.
C) consumers will have a weaker incentive to economize, but medical service suppliers will have a stronger incentive to keep prices low.
D) the suppliers of medical services will have more incentive to economize.