Question
(10pts) Market A: Demand for medical care is expressed as QD=500-C*P, with C being the coinsurance rate. Supply of medical care is express as QS=200+2P.
(10pts) Market A: Demand for medical care is expressed as QD=500-C*P, with C being the coinsurance rate. Supply of medical care is express as QS=200+2P.
- (1) Draw the demand curve and supply curve without health insurance.
- (2) In the same graph, draw the demand curve and supply curve with coinsurance rate being 20%.
- (3) What are market equilibrium price and quantity without health insurance?
- (4) What are market equilibrium price and quantity with coinsurance rate being 20%?
- (5) What is deadweight loss with coinsurance rate being 20%?
Market B: Demand for medical care is expressed as QD=500-0.5 C*P, with C being the coinsurance rate. Supply of medical care is express as QS=200+2P
- (1) Draw the demand curve and supply curve without health insurance.
- (2) In the same graph, draw the demand curve and supply curve with coinsurance rate being 20%.
- (3) What are market equilibrium price and quantity without health insurance?
- (4) What are market equilibrium price and quantity with coinsurance rate being 20%?
- (5) What is deadweight loss with coinsurance rate being 20%?
(5pts) What can be one reason that makes your answers to Market A and Market B different?
Please label in order and draw on paper please
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Principles Of Financial Accounting Chapters 1 To 18
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
12th Edition
9781118978740
