Reading Study Chapter 8 of the text. Review the PowerPoint lesson for Chapter 8 Assignments The following Assignments should be completed and submitted to the course faculty via the learning platform for evaluation and grading. Submit your responses to these questions in one WORD document. List the question first, and then your response. Be sure to properly site your sources, both in-text and with a reference list at the conclusion. If you use an online source to support your answers, you must provide a properly formatted link to the source. You should use APA citation format and make sure your sources are credible. In most cases, your responses should be no more than 400 words.
1. Suppose the supply curve of medical services is perfectly inelastic. Analyze the impact of an increase in consumer income on the market price and quantity of medical services. Next, assume the demand for medical services is perfectly inelastic while the supply curve is upward sloping. Explain the impact of an increase in input prices on the market price and quantity of medical services.
2. In the country of Drazah Larom (moral hazard spelled backward), health insurance is nonexistent and all medical markets are perfectly competitive. Use supply and demand analysis to explain the impact of the following changes on the price and output of physician services.
a. A decrease in the wage of clinic-based nurses b. The adoption of cost-enhancing medical technologies c. An aging population and a correspondingly more severe patient case-mix d. Declining consumer income e. A lower market price for physician services (be careful here!) 20 BUS508 - Economics of Health and Medical Care Course Syllabus
3. In the 1980s, a shortage of registered nurses in the United States led to an increase of almost 21 percent in the real average hourly earnings of RNs from 1981 to 1989 (Pope and Menke, 1990). This increase was the highest of any occupational group. Use supply and demand theory to show the shortage and explain why a dramatic rise in the wage rate occurred.
4. Using supply and demand analysis, show graphically and explain verbally some of the factors that may have led to rising health care costs in the United States from 1960 to the present day. 5. In the mid-1980s, female nurses became increasingly aware that a relatively large number of attractive job opportunities existed outside the medical services industry. In fact, a large number of colleges offered life and transfer credits for nurses so that they could change careers at less cost. Using an equilibrium model of the market for nurses, show what impact this market change had on the wage rate and employment of nurses. Work through the comparative static analysis and explain whether a temporary shortage or surplus occurred and the various market adjustments that took place as a result of the temporary imbalance.
6. Assume the sale of human organs is legalized and a free market develops. Furthermore, assume the market is in equilibrium. Trace through the price and output effects of the following: a. An increase in the incomes of potential buyers of human kidneys. b. A decrease in the price of kidney dialysis. c. The development of a new drug that leaves the immune system intact while preventing transplant rejection (Waldholz, 1992). d. A greater willingness by individuals to supply human kidneys.
7. Explain why economic profits are zero under monopolistic competition in the long run.
8. Explain the economic reasoning underlying the following statement: "People often fail to acquire information about the price they pay for medical services because of health insurance."
9. Explain why it is also important to analyze the structural aspects of the buyer-side of the market.
10. Identify the theoretical underpinnings associated with using profit rate as a mea-sure of market power. What adjustments must be made to reported profit rates for economic reasons?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.