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O 1: (10pts) Market A: Demand for medical care is expressed as QD = 500 - C* P, with C being the coinsurance rate. Supply

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O 1: (10pts) Market A: Demand for medical care is expressed as QD = 500 - C* P, with C being the coinsurance rate. Supply of medical care is express as Q s = 200 + 2P. . (1) Draw the demand curve and supply curve without health insurance. . (2) In the same graph, draw the demand curve and supply curve with coinsurance rate being 20%. . (3) What are market equilibrium price and quantity without health insurance? . (4) What are market equilibrium price and quantity with coinsurance rate being 20%? . (5) What is deadweight loss with coinsurance rate being 20%? (10pts) Market B: Demand for medical care is expressed as QD = 500 - 0.5C* P, with C being the coinsurance rate. Supply of medical care is express as Q s = 200 + 2P . (1) Draw the demand curve and supply curve without health insurance. . (2) In the same graph, draw the demand curve and supply curve with coinsurance rate being 20%. . (3) What are market equilibrium price and quantity without health insurance? . (4) What are market equilibrium price and quantity with coinsurance rate being 20%? . (5) What is deadweight loss with coinsurance rate being 20%? MacBook Air 000 DII F3 F4 F5 F6 F7 F8 F9 $ % &

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