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Business, 30.07.2019 00:20 xxxamslashxxx9
Suppose that the market demand for medical care is summarized by the demand function: qd=100 –2p and the market supply is summarized by the supply function: qs = 20 + 2p a. calculate the equilibrium quantity and price, assuming no insurance is available. b. suppose that health insurance is made available that provides for a 20 percent coinsurance rate. calculate the new equilibrium price and quantity. (hint: how does the demand curve change? ) c. calculate the deadweight loss due to this insurance. d. suppose that the coinsurance rate was raised to 50 percent. calculate the new equilibrium price and quantity. (hint: how does the demand curve change? ) e. calculate the deadweight loss due to this insurance. f. how does your answer compare to the deadweight loss in part c?
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Suppose that the market demand for medical care is summarized by the demand function: qd=100 –2p an...
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