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\begin{tabular}{|c|c|c|}
\hline Quantity Supplied & Price & Quantity Demanded \\
\hline 12,000 & [tex]$\$[/tex] 5,000[tex]$ & 2,000 \\
\hline 10,000 & $[/tex]\[tex]$ 4,000$[/tex] & 4,000 \\
\hline 7,000 & [tex]$\$[/tex] 3,000[tex]$ & 7,000 \\
\hline 4,000 & $[/tex]\[tex]$ 2,000$[/tex] & 11,000 \\
\hline 1,000 & [tex]$\$[/tex] 1,000[tex]$ & 16,000 \\
\hline
\end{tabular}

The table gives supply and demand data for a certain elective surgical procedure. If suppliers provide the quantity of health care demanded and insurance pays 50 percent of the remaining equilibrium price after a $[/tex]\[tex]$1,000$[/tex] deductible is satisfied, the quantity of health care demanded will be:

A. 4,000
B. 7,000
C. 11,000
D. 16,000



Answer :

GinnyAnswer
To find the quantity of healthcare demanded where the quantity supplied equals the quantity demanded, we need to look for the point of equilibrium. The equilibrium point is where the quantity supplied and the quantity demanded are equal.

Let's examine the data provided in the table in detail:

1. When the Price is \[tex]$5,000: - Quantity Supplied: 12,000 - Quantity Demanded: 2,000 2. When the Price is \$[/tex]4,000:
- Quantity Supplied: 10,000
- Quantity Demanded: 4,000

3. When the Price is \[tex]$3,000: - Quantity Supplied: 7,000 - Quantity Demanded: 7,000 4. When the Price is \$[/tex]2,000:
- Quantity Supplied: 4,000
- Quantity Demanded: 11,000

5. When the Price is \[tex]$1,000: - Quantity Supplied: 1,000 - Quantity Demanded: 16,000 By examining the data, we can find the point where the quantity supplied matches the quantity demanded. The equilibrium is: - Price: \$[/tex]3,000
- Quantity Supplied: 7,000
- Quantity Demanded: 7,000

Therefore, the quantity of healthcare demanded at the equilibrium price is:

7,000

So, the correct choice is:
7,000

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