Question
To answer this you need to understand what will cause a demand curve to shift and what will simply bemovementalong the demand curve.Ashift comes from
To answer this you need to understand what will cause a demand curve to shift and what will simply bemovementalong the demand curve.Ashift comes from things like an income change, change to price of substitute, change to price of complement.If all that changes to you is the price you pay then you just move along that demand line.Where you find yourself on your demand curve is based on how much you will pay, and is not necessarily the total cost.
For the following question, you must use a computer program to draw the graph (i.e. excel) and provide your answer. Then, you will save your work and upload the file using the "browse my computer" button.
Assume your demand curve is P=60-5Q. Now draw your demand curve when you have an insurance policy that pays the amount of the doctor visit minus a copayment of $20.How much will you demand if the doctor charges $60?
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