An individual's demand for physician office visits in a given year is given by, Q = 15 - 0.07P, where Q is the number of office visits and P is the out-of-pocket price paid by the individual for each visit. Assume the market price of an office visit is $170.

a. Without insurance, how many office visits would the individual make in one year?

b. Suppose the individual does have insurance and pays only a $40 copayment for each visit. How many office visits will the individual make in one year?

c. What is the moral hazard and deadweight loss (DWL) associated with this individual having insurance?

d. Enter a formula to calculate the proportion of total expenditure on office visits (for this individual with insurance) that is deadweight loss.