Question

In: Economics

Suppose the inverse demand for physician office visits is P = 1000 - 20Q. Now suppose...

Suppose the inverse demand for physician office visits is P = 1000 - 20Q. Now suppose

an insurance policy provides a co-insurance rate of 50%. Graph the old and the new

demand functions (with and without health insurance) and mark their intercepts on the

Price (vertical) and Quantity (horizontal) axes.

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