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

column PNet.)

b. Calculate the quantity demanded when there is insurance. (Put

this figure in column DI.)

c. Plot the demand curve, putting P (not PNet) 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?