Question: Explain the difference between a stop loss and a deductible. Let the demand curve for an individual be x m = 30 p m .

Explain the difference between a "stop loss" and a "deductible." Let the demand curve for an individual be x_m = 30 p_m. Suppose all doctors charge $10 per unit of care consumed. Let there be a deductible of $100 and a stop loss of $200. Let the coinsurance rate be 0.5. What is the effect of such insurance on the demand for medical care?

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