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    Haider Ejaz
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    The document discusses how third-party payer markets impact supply and demand. It notes that third-party payers increase supplier expenses while reducing customer costs, resulting in an equilibrium where supply and demand curves do not intersect. The document also notes that a Keynesian economist would favor such a market since Keynesian theory holds that consumption increases with income and third-party payers impact consumption in this way.

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    The document discusses how third-party payer markets impact supply and demand. It notes that third-party payers increase supplier expenses while reducing customer costs, resulting in an equilibrium where supply and demand curves do not intersect. The document also notes that a Keynesian economist would favor such a market since Keynesian theory holds that consumption increases with income and third-party payers impact consumption in this way.

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    6 views1 page

    The General Population

    Uploaded by

    Haider Ejaz
    The document discusses how third-party payer markets impact supply and demand. It notes that third-party payers increase supplier expenses while reducing customer costs, resulting in an equilibrium where supply and demand curves do not intersect. The document also notes that a Keynesian economist would favor such a market since Keynesian theory holds that consumption increases with income and third-party payers impact consumption in this way.

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    2202 SDSB Principles of Macroeconomics (MECO 121 S6-Lecture)

    CP and Attendance Question Only (8th Feb)

    Name: Haider Ejaz Roll Number: 25110282

    Q1: How does a third-party payer market impact the supply and demand of goods and
    services in an economy? Would a Keynesian economist be in favor of such a market?
    Ans: The general populationTend to consume more when there are no third-party creditors,
    and providers are compelled to deliver more than they otherwise would. As a result, annual
    spending goes up. The impact of third-party payers is to elevate supplier expenses while
    cutting customer real costs for the merchandise and services they use.
    In economies with third-party payers, an equilibrium is attained, but it is not the line at
    which the supply and demand curves merge.

    It is believed that residents' spending demand is affected by their income and that there is a
    specific connection between their consumptions as a factor of income, in accord with the
    existing literature and Keynesian macroeconomic concept.

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