Refer to the graph shown that depicts a third-party payer market for prescription drugs. What happens to total expenditures in this market if a $2 co-pay is established compared to a free-market equilibrium?
A) Expenditures rise to $240
B) Expenditures rise to $270
C) Expenditures fall by $120
D) Expenditures remain at $120

Question

Refer to the graph shown that depicts a third-party payer market for prescription drugs. What happens to total expenditures in this market if a $2 co-pay is established compared to a free-market equilibrium? 
A) Expenditures rise to $240 
B) Expenditures rise to $270 
C) Expenditures fall by $120 
D) Expenditures remain at $120

Quizplus · Accepted Answer

The Answer of Refer to the graph shown that depicts a third-party payer market for prescription drugs. What happens to total expenditures in this market if a $2 co-pay is established compared to a free-market equilibrium? 
A) Expenditures rise to $240 
B) Expenditures rise to $270 
C) Expenditures fall by $120 
D) Expenditures remain at $120

Refer to the Graph Shown That Depicts a Third-Party Payer