Consider the allocation of services in the United Kingdom’s NHS, as noted in Figure 21.2.

If the government raises the administered price up from P *, trace what would happen to expenditures in the NHS and in the private sectors.

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Table 21.1 Classification of Health System Types Healthcare system type Regulation Financing Provision Cases National Health Service State State State Denmark Sweden Finland Portugal Iceland Spain Norway U.K. National Health State State Private Australia New Zealand Insurance Canada Italy Ireland Social Health Insurance Societal Societal Private Austria Luxembourg Germany Switzerland Private Health System Private Private Private U.S.A. Etatist Social Health State Societal Private Belgium Poland Insurance Estonia Slovakia France Israel Czech Republic Japan Hungary Netherlands Social-based mixed-type Societal Societal State Slovenia Korea