An outbreak of a serious viral illness has hit a small town with a population of 2,000 people. The local authorities consult with a panel of experts from a nearby medical school. The experts offer two possible approaches: Treatment A will save 500 people for sure.
Treatment B offers a 25% chance of saving 2,000 people and a 75% chance of saving no one.

The authorities then ask for a second opinion and ask another panel of experts from a second medical school. This panel suggests two options as well:

Treatment C will lead to the death of 1,500 people for sure.
Treatment D offers a 75% chance of 2,000 people dying and a 25% chance of no one dying.

If asked to make two choices-the first between A and B and the second between C and D-an official who falls prey to the disease dilemma (a famous example of a framing effect) will typically pick:

a. A and C
b. A and D
c. B and C
d. B and D

Which of the following best explains why a large company can undersell small retailers? a. large companies can offer workers lower wages because they provide more jobs. b. large companies can pay their employees less because they do unskilled jobs. c. large companies can negotiate better prices with wholesalers. d. large companies have fewer expenses associated with overhead.

Consider how health insurance affects the quantity of health care services performed. suppose that the typical medical procedure has a cost of $160, yet a person with health insurance pays only $40 out of pocket. her insurance company pays the remaining $120. (the insurance company recoups the $120 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) consider the following demand curve in the market for medical care. use the black point (plus symbol) to indicate the quantity of procedures demanded if each procedure has a price of $160. then use the grey point (star symbol) to indicate the quantity of procedures demanded if each procedure has a price of $40. q d at p=$160 q d at p=$40 0 10 20 30 40 50 60 70 80 90 100 200 180 160 140 120 100 80 60 40 20 0 price of medical procedures quantity of medical procedures demand if the cost of each procedure to society is truly $160, the quantity that maximizes total surplus is procedures. economists often blame the health insurance system for excessive use of medical care. given your analysis, the use of care might be viewed as excessive because consumers get procedures whose value is than the cost of producing them.

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk