$30 per visit, total spending equaled $30 million per week Now doctors receive $50 per visit and provide 1,500,000 visits per week Total spending has risen to $75 million per week ($50 times 1,500,000 visits, shown by the darkly shaded region plus the lightly shaded region) Figure 4.16 Total Spending for Physician Office Visits Covered by Insurance With insurance, the quantity of physician office visits demanded rises to 1,500,000 The supply curve shows that it takes a price of $50 per visit to increase the quantity supplied to 1,500,000 visits Patients pay $10 per visit and insurance pays $40 per visit Total spending rises to $75,000,000 per week, shown by the darkly shaded region plus the lightly shaded region The response described in Figure 4.16 "Total Spending for Physician Office Visits Covered by Insurance" holds for many different types of goods and services covered by insurance or otherwise paid for by third-party payers For example, the availability of scholarships and subsidized tuition at public and private universities increases the quantity of education Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 218