Suppose that in the absence of insurance, the daily demand for visits to a clinic is...

Suppose that in the absence of insurance, the daily demand for visits to a clinic is given by Qd=200 - 0.5P, where c is the coinsurance rate and P is the price charged by the clinic.

Calculate the quantity demanded when P is $100

Calculate daily revenues when P is $100

Expert Solution

QD= 200-0.5P

Qd when P=100

= 200-0.5(100) = 150

Total revenue when P=100

= P*Q

= 100*150

= 15000

Rahul Sunny answered 2 years ago

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