Suppose that there is no third-party payer in the medical care market in Uganda in 1955. Suppose that in 1960, health insurance companies begin operations in Uganda. All else being equal, what does supply and demand analysis predict will happen in the medical care market in 1960?

1.Demand will decrease in the medical care market initially due to insurance premium costs, but will increase over the long term

2.Total expenditures will increase

3.Total expenditures will decline

4.The total quantity will decline

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct option is 1 Demand will decrease in the medical care market initially due to ... View the full answer