1) In the U.S. patients pay an average of 20% of total healthcare expenditures. Using the table below, if patient’s pay an average of $647 per visit, what quantity will be exchanged in this market? What is the total amount spent on Healthcare? (Remember, this is a Third-Party Payer Market)
2) Healthcare costs continue to rise faster than GDP, taking up an increasing share of total U.S. expenditures. What is one way that we might reduce total healthcare expenditures? Use the values on the table (estimates are totally fine) to illustrate how your proposal would reduce the total cost of healthcare.
Sample Solution
