Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

if someone could please answer questions 11- 15 clearly! And please provide an explanation as to why the answer is correct, thank you! Back PS4.pdf

image text in transcribed

if someone could please answer questions 11- 15 clearly! And please provide an explanation as to why the answer is correct, thank you!

image text in transcribed
Back PS4.pdf 11. In the figure below, suppose that Qo = 10 visits, Q. = 20 visits, P. = 10, and P, = 2. The increased expenditures due to insurance are: Demand Demand 100% 20%% Price coinsurance coinsurance Pa P Quantity QI $50. $100. $200. $300. Seattle Pacific University ECN 4010 - Health Economics PROBLEM SET 4 12. In the figure above, the consumer's increased benefits (area under the demand curve) are: a. $120. b. $9o. C. $60. d. $30. 13. In the figure above, the consumer's welfare loss is: a. $100. b. $60. C. $40. d. $20. 14. In the figure above, suppose that visits were "free", that is zero copayments. As a result, quantity would be 22.5 visits with total expenditures of a. $250. b. $225- C. $200. d. So. 15. If insurance is provided for a drug (such as insulin for Type 1 diabetes) for which the demand is price inelastic: a. there can be no moral hazard because the quantity does not change. b. moral hazard occurs because the insured pay less. c. patients without diabetes stop buying the insurance. d. patients switch to insulin from other drugs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

3rd Edition

1319105564, 978-1319105563

More Books

Students also viewed these Economics questions

Question

2. What types of information are we collecting?

Answered: 1 week ago

Question

5. How quickly can we manage to collect the information?

Answered: 1 week ago

Question

3. Tactical/strategic information.

Answered: 1 week ago