Healthcare spending (S) can be stated as a function of 3 factors: population size, healthcare quantity demanded per person, and price per unit of healthcare in the following form: S= (Population Size) x (Health care Quantity per Person) x (Price per Unit of Health Care) a. Explain how each of the factors impact health care spending (S). b. Figure 1-1 (textbook, page 5) shows how U.S. healthcare expenditures have grown over the years. Of the factors presented above, which one has most significantly influenced healthcare expenditures in the USA. Please explain. Table 1.1 Health Expenditures as Percent of GDP in Selected OECD Countries 1960 1970 1980 1990 2000 2010 2015 6.9 7.6 9.2 6.3 7.5 7.2 7.0 5.2 6.3 6.9 9.3 10.3 10.4 102 3.9 5.4 7.9 8.5 10.1 9.9 10.7 6.9 10.4 8.3 5.7 76 8.1 8.6 8.9 4.7 8.3 7.7 8.4 8.3 6.6 3.8 3.8 8.9 6.3 7.0 8.4 5.9 5.5 5.4 6.0 5.4 9.5 10.7 11.0 9.9 106 9.6 11.0 11.1 8.2 72 6.8 7.0 3.0 3.7 4.7 5.1 6.3 8.3 5.9 7.6 9.1 Country Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States 3.0 4.6 7.4 6.5 3.4 5.2 7.8 6.1 7.7 6.0 4.0 5.4 4.8 8.0 6.9 4.0 3.1 5.9 49 7.1 8.8 10.6 9.0 9.5 6.4 7.1 62 10.4 9.7 8.9 6.4 11.2 72 7.2 5.9 10.8 9.4 9.9 5.2 7.4 5.9 7.0 7.5 2.9 4.8 5.9 7.7 5.3 8.4 2.5 5.3 53 1.5 3.5 6.8 74 4.9 5.3 8.9 7.3 3.3 5.6 8.7 5.4 8.9 7.0 9.0 11.1 11.5 5.2 9.8 16.9 6.5 8.2 8.2 3.6 6.0 11.9 78 9.0 8.5 10.5 5.3 8.5 16.4 9.3 4.7 63 3.9 5.1 4.5 7.0 12.5