Question
[Figure A] Assume that Drich is the only demand curve for doctor visits for this question and that insurers offer policies with the deductible and
[Figure A] Assume that Drich is the only demand curve for doctor visits for this question and that insurers offer policies with the deductible and copay shown. If the copay stays fixed at $F (not a percentage) and the deductible amount does not change how are patients affected if the providers raise prices (P = MC) by 10%? (The 10% price hike still has price (MC) intersect Drich after the deductible is met.)
Group of answer choices
A. Patients end up paying more than they did at the lower price
B. Patients increase the number of visits they consume
C. Patients end up paying less than they did at the lower price
D. Patients reduce the number of visits they consume
Drich Dpoor A M TP Z C MC Price, Costs S - - - U MI R I H IK F G N IE W B O QuantityStep by Step Solution
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