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Let consumer demand for medical care be: Q = 200 Pp (1) where Pp is the out-of-pocket price they actually pay. The price of care
Let consumer demand for medical care be: Q = 200 Pp (1) where Pp is the out-of-pocket price they actually pay. The price of care without insurance, denoted Pl , is $120. In addition to no insurance, there are four proposals for insurance coverage. For each of them: find the quantity demanded Q (show your work) find the social loss (SW L) if any (show your work) and explain why it is caused represent the equilibrium (price and respective quantity demanded) and the SW L graphically
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