Question: In three separate diagrams using demand curves carefully draw (a) the effect of an insurance plan that covers 50% of all services purchased; (b) the
In three separate diagrams using demand curves carefully draw (a) the effect of an insurance plan that covers 50% of all services purchased; (b) the effect of an insurance plan that pays $25 per doctor visit; (c) the effect of an insurance plan with a deductible of $300, and full coverage beyond that. Assume in all cases that doctors provide medical services at a constant price of $30 per visit. (You only have enough information for a careful sketch but not an exact graph).
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