Question
Suppose the annual number of doctor visits per year (Q D ) is related to the price per doctor visit (P) by the relation Q
Suppose the annual number of doctor visits per year (QD) is related to the price per doctor visit (P) by the relation QD = 5 - 0.025P.When the price is dollar 80 per visit, how many visits are there per year?Illustrate your answer in a graph.How much are expenditures on doctor visits?Suppose an individual obtains insurance.There is no deductible, and the patient's co-payment is $40 per visit.How many visits to the doctor occur now?Show this in your graph.Calculate the individual's annual out-of-pocket costs, the amount paid by the insurance company, and total expenditures on doctor visits when there is insurance.
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