Suppose the government pays 80% of the patient’s medical bill so the patient pays 20%. The supply-demand diagram below shows the impact on the price and quantity of medical care. Note that with no insurance, D and S intersect at P $100, Q 100 and E P Q $10,000; if P $0, D 200.

a. With 80% insurance, D and S intersect at P $250, Q 150; of the $250, the patient pays $________ and the government pays $________.

b. With 80% insurance, E $________ and taxpayers must pay $________.

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P $500 $250 D $100 $. D' S 100 150 200