2. The following table shows the quantity demanded and supplied of physician offi ce visits at various prices. Draw the demand and supply curves. What is the equilibrium price and quantity?

Assume the patient gets a job and has employer-provided health insurance that reimburses 50% of the cost of physician visits. What is the new equilibrium price and quantity?

Price (P) Quantity Demanded Quantity Supplied

$40 12 2

$60 10 4

$80 8 6

$100 6 8

$120 4 10

$140 2 12

$160 0 14