The demand function is Q = 600 − P, with P being the price paid by consumers. Put a list of prices ranging from $400 to $0 in a column labeled P. (Use intervals of $50.)

a. Consumers have insurance with 40 percent coinsurance. For each price, calculate the amount that consumers pay. (Put this figure in a column labeled P_Net.)

b. Calculate the quantity demanded when there is insurance. (Put this figure in a column labeled D_I.)

c. Plot the demand curve, putting P (not P_Net) on the vertical axis.

d. The quantity supplied equals 2 × P. Put these values in a column labeled S.

e. What is the equilibrium price?

f. How much do consumers spend?

g. How much does the insurer spend?