Back2work succeeded because it offered personalized assistance to its clients-people who had lost jobs-beginning with having a live person answer every phone call. when management proposed an automated answering service with a directory tree ("press 1 for a companydirectory", for example), cathy was concerned the company would lose customers. cathy's resistance stemmed from her

a.

belief that uncertainty would increase

b.

concern over personal loss

c.

belief that the change was incompatible with the goals and interests of the organization.

d.

fear that she would be forced out of her habit

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.