Multiple Choice
All of the following are demand-oriented approaches to selecting an approximate price level except which one?
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5. Consumer and Producer Surplus; Price Ceilings and Floors
Consumer Surplus and Willingness to Pay
Multiple Choice
Which of the following is a demand-increasing factor in the health care market?
A
An increase in consumer income
B
A decrease in population size
C
A decrease in the price of health care substitutes
D
A decrease in consumer preferences for health care
Verified step by step guidance1
Understand that a demand-increasing factor shifts the demand curve to the right, meaning consumers want to buy more of the good or service at every price.
Recall that an increase in consumer income generally increases demand for normal goods, such as health care, because consumers have more purchasing power.
Recognize that a decrease in population size would reduce the number of consumers, thus decreasing demand, not increasing it.
Note that a decrease in the price of substitutes makes those substitutes more attractive, which typically decreases demand for the original good (health care in this case).
Understand that a decrease in consumer preferences for health care means consumers want less of it, which decreases demand rather than increasing it.
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