When Consumers Are Required to Pay a Fraction of the Cost

Multiple Choice

When consumers are required to pay a fraction of the cost of their medical treatment,_____

A) it reduces the demand for health care services to zero.
B) it reduces the demand for health care services, but does generate revenue for the government.
C) it reduces the income elasticity of demand for health care services.
D) it actually increases the amount of consumer surplus they receive from health care services.
E) it increases the financial burden of most consumers.