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.Which scenario would you expect to have the highest social loss?

a. copay plan

b. full insurance

c. uninsurance

d. coinsurance plan