Y6

You work for the Kurdish Regional Statistics Office (KRSO) and are working on a report on health expenditures. Your boss particularly wants to know how health insurance could impact the market for health care. Draw a supply and demand diagram for doctors' visits. Show the market equilibrium if there were a private market and no insurance. Show how the outcome of the market would change if there were third-party payments (through insurance). Discuss the change and whether or not you think this impact of insurance happens in the real world.