Question

In: Economics

People are most likely to overconsume health care services if A. they are insured and pay...

People are most likely to overconsume health care services if

A. they are insured and pay high insurance premiums and deductibles.
B. they are insured and have a low copayment for each doctor visit.
C. they are insured, but have a high copayment for each doctor visit.
D. they are uninsured.

Solutions

Expert Solution

Option B

they are insured and have a low copayment for each doctor visit.

The consumer is insured and the copayment is lower than the consumer overconsumes the health care.

because the copayment means the extra cost the consumer bears per visits and if that is lower than the consumer try to go maximum time but if the copayment and deductible are higher then the consumer consumption decreases.


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