Your state just expanded Medicaid, and you anticipate that $100,000$ additional people will gain coverage. The average price for a physician$$s visit for an uninsured patient is $$100.$ If a patient qualifies for Medicaid, the price will fall to $$10.$

The equation Quantity $=30\mathrm{.}02\backslash$times Price defines the demand relationship.

$1.$ How many visits did the average uninsured patient make?

$2.$ Some physicians have a price of $$50.$ How many visits will there be at this price?

$3.$ Some clinics provide free care. How many visits will there be at this price?

$4.$ Use the quantities that you estimated to construct a demand curve. Put the prices on the vertical axis and quantities on the horizontal axis.

$5.$ How many visits will the average Medicaid patient make to physicians who charge $$100?$

$6.$ How many visits will the average Medicaid patient make to physicians who provide free care?

$7.$ Use these two points to construct a new demand curve. $($Remember to keep the physician$$s price on the vertical axis, not the amount the patient pays.$)$

$8.$ How does the new demand curve differ from the old one?