Question

For each one of the following hypothetical scenarios, using a demand-and-supply graph, show and explain the initial impact of each scenario on the equilibrium market price and quantity for health care services:

a) In the U.S., “Medicare for all” have become real and every individual now has health insurance under universal health care coverage. At the same time, medical schools, on average, have become more serious and stringent in training and educating future medical doctors and in accomplishment of this aim, along with other improvements, they increased number of years required for a general MD degree, prior to residency.

b) TV ads of food and beverage products with relatively high sugar, sodium, and fat content have increased during both adult and child audience programming in all channels.

c) Congress cuts funding for many programs and agencies of the U.S. Department of Health & Human Services and the U.S. Department of Agriculture. Accordingly, CDC 3 can no longer continue to run a massive advertising campaign that informs public on the harmful chemicals in e-cigarettes. Further, although FDA has been given the authority by a new rule to regulate all e-cigarette products, due to limited funding, it cannot effectively audit manufacturers of e-cigarettes, which resulted in compliance failures by manufacturers on printing of the required health warnings on e-cigarette product packages.

Answer 1