Suppose the demand for physician visits is p = 150-3Q. Suppose physicians charge $75 per visit....

  

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Suppose the demand for physician visits is p = 150-3Q. Suppose physicians charge $75 per visit. a. How many times will a patient visit a physician if the patient does not have any insurance? b. Find the fixed rate subsidy that would result in 40 visits per year. c. Find the coinsurance rate that would result in 40 visits per year. d. Find the co-pay rate that would result in 40 visits per year. e. What is the welfare loss associated with parts b-d? f. If the patient had a deductible for $1,500, after which the patient would have a co-pay of 10 dollars, how many visits would the patient make per year? Suppose the demand for physician visits is p = 150-3Q. Suppose physicians charge $75 per visit. a. How many times will a patient visit a physician if the patient does not have any insurance? b. Find the fixed rate subsidy that would result in 40 visits per year. c. Find the coinsurance rate that would result in 40 visits per year. d. Find the co-pay rate that would result in 40 visits per year. e. What is the welfare loss associated with parts b-d? f. If the patient had a deductible for $1,500, after which the patient would have a co-pay of 10 dollars, how many visits would the patient make per year?

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a Without insurance the patient pays the full 75 per visit Equating the demand curve to the pri... View the full answer