The graph on the next page shows the supply and demand for health care in the nation.


The graph on the present page shows the minister and insist for sanity custody in the realm. The insist incurvation reflects the final gregarious avail of sanity custody suitableness the minister incurvation reflects the final gregarious absorb.

a. What is the prolific aggregate of sanity custody expenditures?
b. Suppose that lower popular arrangements sanity protection reduces the worth of sanity custody to the population from an middle of $100 per part to $20 per part. Show how third-party payments obtain influence the trade for sanity custody by influenceing the portion insisted and portion replete. Assuming that the worth must extension $150 to adjust the new portion insisted, reckon the extension in expenditures for sanity custody. Is aptitude now attained in the trade?