You are the administrator of Kaiserin Temporare clinic and you are paid a per-vi

Question

You are the administrator of Kaiserin Temporare clinic and you are paid a per-visit amount of $30. Assuming your supply curve is the normally upsloping to the right one you remember from your health economics class. Select one of the following events and indicate what you believe would be the net effect on the quantity of visits supplied by your clinic: Nurse salaries increase; Fixed overhead costs increase; or You offer "concierge care" where you provide more time for each patient visit (assuming that makes a higher "quality" of care).

Explanation / Answer

In the health supply curve case, increase in the nurse salaries will increase the cost associated with providing healthcare. Thus, supply curve will shift leftwards.

Increase in the fixed cost or more time being provided for each patient visit will reduce the number of visits as more time is provided for each visit. Thus, quantity of visits supplied by your clinic will get reduced.

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