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Assume we have the following information for demand for mental health visits: i) when price = $400 per visit, a consumer's quantity demanded is 10
Assume we have the following information for demand for mental health visits: i) when price = $400 per visit, a consumer's quantity demanded is 10 visits ii) when price = $300 per visit, a consumer's quantity demanded is 15 visits iii) when price = $200 per visit, a consumer's quantity demanded is 20 visits The current price is $400 per visit and a consumer's health insurance covers 50% of the bill. Using the concept of moral hazard, what is the resulting deadweight loss? (Hint: the area of a triangle equals (0.5*base*height)
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