Authors libby rittenberg 218

$30 per visit, total spending equaled $30 million per week. Now doctors
receive $50 per visit and provide 1,500,000 visits per week. Total spending
has risen to $75 million per week ($50 times 1,500,000 visits, shown by
the darkly shaded region plus the lightly shaded region).
Figure 4.16 Total Spending for Physician Office Visits Covered by
Insurance

With insurance, the quantity of physician office visits demanded rises
to 1,500,000. The supply curve shows that it takes a price of $50 per
visit to increase the quantity supplied to 1,500,000 visits. Patients pay
$10 per visit and insurance pays $40 per visit. Total spending rises to
$75,000,000 per week, shown by the darkly shaded region plus the
lightly shaded region.
The response described in Figure 4.16 "Total Spending for Physician Office
Visits Covered by Insurance" holds for many different types of goods and
services covered by insurance or otherwise paid for by third-party payers.
For example, the availability of scholarships and subsidized tuition at
public and private universities increases the quantity of education
Attributed to Libby Rittenberg and Timothy Tregarthen
Saylor URL: />
Saylor.org

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