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.