A recent study found that the price elasticity of demand for medical care is – 2.3 [Kowalski, 2009]. If this estimate is correct, what does the existence of a coinsurance rate of 20 percent do for an individual’s demand for medical ser-vices? What are the efficiency implications? existence of a coinsurance rate of 20 percent do for an individual’s demand for medical ser-vices? What are the efficiency implications?
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