​Figure 52

Multiple Choice

​Figure 5.2. The figure shows the supply and demand curves of a firm.
-Which of the following is a possible reason for a comparatively steeper demand curve for health care?​

A) ​A large increase in the price of health care leads to a more than proportionate fall in the quantity demanded for health care.
B) ​The demand curve for health care is comparatively steeper than other products, because health care is a Giffen good.
C) ​A change in the price of health care leads to no change in the profit earned by the suppliers.
D) ​A large increase in the income of households leads to a less than proportionate increase in the quantity demanded.
E) ​A large increase in price does not cause a reduction in the purchase of health care by the same proportion.