Analytical Questions: Please show all calculations for full credit. 4 Hearing Loss and QALY : A new device is invented to cure hearing loss. Imagine this device is similar to a cochlear implant, but perfectly effective. Demand for these hearing devices in the US is given by Q = 2000 - P. The supply of these devices is perfectly elastic, with a market price of $1,000. a) [1 point] After surveying individuals, deaf individuals report they are indifferent between living for ten years wii hearing loss or six years with perfect hearing. Based on this survey, what is the implied QALY associated with hearing loss? h) [2 points] What is the equilibrium price and quantity for hearing devices? c) [2 points] A new universal health insurance policy provides insurance to everyone in the country, which pays 50% of all medical costs. Aer this policy is enacted, what will he the new quantity of hearing devices purchased? d) [2 points] Suppose the value of a QALY is determined to be $1,000. Calculate the increased benet to consumers of universal health insurance due to QALY. e) [3 points] What is the deadweight loss from moral hazard caused by universal health insurance? {0 [1 point] Is the gain in QALYs due to universal health care in this setting larger or smaller than the DWL'El