Problem
1. Suppose policymakers are worried that Medicaid enrollees receive too little care at hospitals. Using the mixed economy model discussed in class, explain how policymakers could use reimbursement rates to increase the care Medicaid enrollees receive.
2. Describe another strategy that policymakers could consider to increase the amount of care that Medicaid enrollees receive.
3. Suppose the government implements an income tax cut that shifts private demand curve for health care to the right. Use the mixed economy model to predict how the shift in private demand could affect the amount of care people with Medicaid receive.