The local government has decided that because children's health has large external benefits, it will offer a subsidy to help families payfor visits to the pediatrician. However, the government isn't sure at what level to set the subsidy. The figure below shows the currentdemand curve for pediatrician visits (MBprivate) and three alternative subsidies, represented by curves Dsubsidy = $30. Dsubsidy =$60. and Dsubsidy = $90Price$240$220$200$180$160$140$120$100$80$60$40$20010050S-MCQuantity of pediatrician visitsCialDubsidy-510Dobity-360Dudy-130privateMB450500ToolsA.DWL 30DWL0a. Assume that the correct level of subsidy is $60. The socially optimal level of pediatrician visits is.visitsb. Compared to the efficient outcome, graph the deadweight loss that would result from subsidies of $30 or $90.Instructions: Use the tools provided "DWL 30' and 'DWL 90' to illustrate the deadweight loss for each subsidy Drag the points to moveor resize.

When market demand and supply forces are not in equilibrium, the cost to society born due to such…

The local government has decided that because children's health has large external benefits, it will offer a subsidy to help families pay for visits to the pediatrician. However, the government isn't sure at what level to set the subsidy. The figure below shows the current demand curve for pediatrician visits (MBprivate) and three alternative subsidies, represented by curves Dsubsidy = $30. Dsubsidy = $60. and Dsubsidy = $90 Price $240 $220 $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 S-MCMCal Quantity of pediatrician visits -Dabidy-$30 Didy-580 Doubody-$30 MD private Tools A. DWL 30 A DWL a. Assume that the correct level of subsidy is $60. The socially optimal level of pediatrician visits is. visits b. Compared to the efficient outcome, graph the deadweight loss that would result from subsidies of $30 or $90. Instructions: Use the tools provided "DWL 30' and 'DWLgo' to illustrate the deadweight loss for each subsidy Drag the points to move of resize

The local government has decided that because children's health has large external benefits, it will offer a subsidy to help families pay for visits to the pediatrician. However, the government isn't sure at what level to set the subsidy. The figure below shows the current demand curve for pediatrician visits (MBprivate) and three alternative subsidies, represented by curves Dsubsidy = $30. Dsubsidy = $60. and Dsubsidy = $90 Price $240 $220 $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 S-MCMCal Quantity of pediatrician visits -Dabidy-$30 Didy-580 Doubody-$30 MD private Tools A. DWL 30 A DWL a. Assume that the correct level of subsidy is $60. The socially optimal level of pediatrician visits is. visits b. Compared to the efficient outcome, graph the deadweight loss that would result from subsidies of $30 or $90. Instructions: Use the tools provided "DWL 30' and 'DWLgo' to illustrate the deadweight loss for each subsidy Drag the points to move of resize

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter5: Demand For Health And Medical Care

Section: Chapter Questions

Problem 9QAP

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