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5. Assume that the market price for a physician visit is $400 per visit. A person...

5. Assume that the market price for a physician visit is $400 per visit. A person has an insurance plan that has a $3200 per year deductible. Once this deductible is met, the person’s coinsurance rate goes from C = 1 to C = .25. For each of the following inverse demand curves, show graphically and calculate the amount of doctor visits that each person will choose during the year. a. P = 1000 - 100Q b. P = 600 – 100Q

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Rahul Sunny answered 2 years ago
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