Consider the following information on Alfred’s demand for visits per year to his health clinic, if his health insurance does not cover (100 percent coinsurance) clinic visits.

(a) Alfred has been paying $30 per visit. How many visits does he make per year? Draw his demand curve.

(b) What happens to his demand curve if the insurance company institutes a 40 percent coinsurance feature (Alfred pays 40 percent of the price of each visit)? What is his new equilibrium quantity?
P Q 5 9 10 9 15 9 20 8 25 7 30 6 35 5 40 4