The following graph shows the market for doctor's office visits. In this market, the central government...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following graph shows the market for doctor's office visits. In this market, the central government provides health insurance to all consumers. The government insurance plan stipulates a copayment of $40 per doctor's office visit. That is, consumers pay $40 for each doctor's appointment, and the government pays the remainder. ( PRICE (Dollars per visit 200 100 160 5 120 100 60 40 20 Market for Doctor's Office Visits Supply Demand 1 2 3 4 5 6 7 8 QUANTITY OF VISITS (Milions per month) 9 10 Area Calculator In the absence of the copayment plan, the equilibrium price would be 5 million visits per month, be Under the copayment plan, the quantity of visits demanded by consumers is number of office visits at a price of $ scheme. $120.00 per doctor's office visit, and the equilibrium quantity would million visits per month. Doctors are willing to supply this per visit under the copayment per visit. Therefore, the government will pay s Under the copayment plan, total payments for visits to the doctor amount to s is paid by consumers and s In the absence of the copayment plan, total payments for visits to the doctor amount to s green rectangle (triangle symbols) to calculate areas in the graph. You will not be graded on where you place the green rectangle. million per month. Hint: You can use the million of which is paid by the government. million per month, S The government copayment plan might lead to an efficient outcome if visits to the doctor's office generate external million of which The following graph shows the market for doctor's office visits. In this market, the central government provides health insurance to all consumers. The government insurance plan stipulates a copayment of $40 per doctor's office visit. That is, consumers pay $40 for each doctor's appointment, and the government pays the remainder. ( PRICE (Dollars per visit 200 100 160 5 120 100 60 40 20 Market for Doctor's Office Visits Supply Demand 1 2 3 4 5 6 7 8 QUANTITY OF VISITS (Milions per month) 9 10 Area Calculator In the absence of the copayment plan, the equilibrium price would be 5 million visits per month, be Under the copayment plan, the quantity of visits demanded by consumers is number of office visits at a price of $ scheme. $120.00 per doctor's office visit, and the equilibrium quantity would million visits per month. Doctors are willing to supply this per visit under the copayment per visit. Therefore, the government will pay s Under the copayment plan, total payments for visits to the doctor amount to s is paid by consumers and s In the absence of the copayment plan, total payments for visits to the doctor amount to s green rectangle (triangle symbols) to calculate areas in the graph. You will not be graded on where you place the green rectangle. million per month. Hint: You can use the million of which is paid by the government. million per month, S The government copayment plan might lead to an efficient outcome if visits to the doctor's office generate external million of which
Expert Answer:
Answer rating: 100% (QA)
a In absence of copayment price is 120 and visits is 5 ... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
The following graph shows the market for pollution rights. a. If there are no restrictions on pollution, what amount is discharged? b. What is the quantity supplied and the quantity demanded if the...
-
The following graph shows the effect on consumer surplus, producer surplus, government tariff revenue, and economic surplus of a tariff of $1 per unit on imports of plastic combs into the United...
-
The following graph shows three supply curves with varying degrees of price elasticity. Identify the perfectly elastic, perfectly inelastic, and unit elastic supply curves. Price Price Price Quantity...
-
The Assembly Department of Zip Surge Protectors began September with no work in process inventory. During the month, production that cost $39,860 (direct materials, $9,900, and conversion costs,...
-
Define what is meant by an entity in a data model. How should an entity be named? What information about an entity should be stored in the CASE repository?
-
Two players, Robert and Carol, play a game with payoff matrix (to Robert) (a) Is the game strictly determined? Why? (b) Suppose that Robert has strategy [.7 .3]. The opponents agree that the game...
-
Suppose you started up your own landscaping business. A customer paid you $175 in advance to mow his or heV lawn while he or she was on vacation. You performed landscaping services for a local...
-
The following graph shows the labor market for research assistants in the fictional country of Universalia. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is...
-
Reflect on and briefly discuss four lessons you learned in reading Ghost Map and its connection to concepts you have studied in this class (stats) that will Impact your Decision Making System in a...
-
write a closed-research legal memo using the case cases given, addressing whether Mr. Adler can assert an adverse possession claim to Scrub Lot 40. Please write up your memo using the issue , brief...
-
What is the efficient market hypothesis, and what implications does it have for investors?
-
What are the reasons for limitation periods generally? How do they apply to land?
-
Distinguish between the circumstances under which an easement may be obtained by prescription and a title may be extinguished by adverse possession.
-
What normally constitutes the consideration for a guarantee?
-
Describe the two main classifications of interests in land. Distinguish between freehold and leasehold estates.
-
To whom does a guarantor give his or her promise?
-
If A and B make a contract and then, with A ' s consent, C replaces B in the contract: the contract has been breached. A can still hold B liable if the contract is breached. a novation has occurred....
-
Record the following selected transactions for March in a two-column journal, identifying each entry by letter: (a) Received $10,000 from Shirley Knowles, owner. (b) Purchased equipment for $35,000,...
-
Explain why the long-run aggregate supply curve is vertical.
-
Suppose the current equilibrium price of a quarter-pound hamburger is $5, and 10 million quarter-pound hamburgers are sold per month. After the federal government imposes a tax of $0.50 per...
-
Suppose that Federal Reserve policy leads to higher interest rates in the United States. a. How will this policy affect real GDP in the short run if the United States is a closed economy? b. How will...
-
Why do free trade areas develop rules of origin?
-
How does the WTO differ from the GATT?
-
What was the goal of the Treaty of Rome?
Study smarter with the SolutionInn App