A person is considering whether to buy insurance or to go uninsured. Their demand for medical services is Q=75 - P. They can choose to go uninsured, to get full insurance, to get a 50% coinsurance plan, or to get aplan with a $25 deductible. The list price of the medical service is $50.

The next several questions will have you calculate the Q and SL for each option.Before you do the calculations, think about which scenario ought to have the highest social loss, and why.

What would be the Q and social loss if they got the 50% coinsurance plan?

a. Q=100, SL=500

b. Q=50, SL=312.5

c. Q=50,SL=0

d. Q=25,SL=725