Use the Following to Answer Question(s): the Market for Health

Multiple Choice

Use the following to answer question(s) : The Market for Health Care

-(Exhibit: The Market for Health Care) Based on the exhibit and assuming that there are no third-party payers:

A) the total amount spent on health services is OP₁AQ₁ at price P₁.
B) the equilibrium price and quantity are P₃ and Q₂.
C) at price P₂ there would be a surplus.
D) A and B are true.