Suppose that a group of physicians establishes a joint practice in a remote area. This group provides the only health care available to people in the local community, and its objective is to maximize total economic profits for the group's members. A government agency determines that this community qualifies for a special program in which the government will pay for a number of health care services that most residents previously had not consumed. Many residents immediately make appointments with the community physicians' group. This will result in all of the following except

Question

Suppose that a group of physicians establishes a joint practice in a remote area. This group provides the only health care available to people in the local community, and its objective is to maximize total economic profits for the group's members. A government agency determines that this community qualifies for a special program in which the government will pay for a number of health care services that most residents previously had not consumed. Many residents immediately make appointments with the community physicians' group. This will result in all of the following except

Part 2
A.
an increase in the price of health care.
B.
a decrease in the amount of health care services.
C.
an increase in demand for health care services.
D.
an increase in the amount of health care services.

Answer 1

B. a decrease in the amount of health care services.