7. One insurance plan costs $100 a month and has a $50 copayment for all services. Another...

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7. One insurance plan costs $100 a month and has a

$50 copayment for all services. Another insurance plan costs $50 a month and requires patients to pay a 15% coinsurance. A consumer is trying to decide which plan to purchase. Which plan would the consumer select with an anticipated $200 per month in medical bills? What about $600 per month in medical bills? Set up an equation to determine the monthly amount of medical expenses at which the consumer would be indifferent between the two plans.

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Principles Of Microeconomics

ISBN: 9780393679199

3rd Edition

Authors: Dirk Mateer, Lee Coppock

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