Question
How can price controls in the healthcare sector result in a decrease in services over time? a.As wages increase throughout the economy, price controls on
How can price controls in the healthcare sector result in a decrease in services over time?
a.As wages increase throughout the economy, price controls on the healthcare sector make it difficult for hospitals and medical groups to pay competitive wages and thus retain its employees to provide their current services.
b.As prices and wages increase throughout the economy, price controls on the healthcare sector make medical services less expensive than other goods and services. Thus, demand will be much greater than if there were no price controls.
c.Regulators are rewarded if they are able to use price controls to limit medical expenditure increases and to achieve a reduction in the absolute amount spent on medical services.
d.Price controls do not have any impact on services over time.
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