Assume that the market price for physician visit

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Assume that the market price for a physician visit is $100 per visit. A person has an insurance plan that has a $1000 per year deductible. Once this deductible is met, the person’s coinsurance rate goes from C = 1 to C = .20. Let’s look at three different people. Person A’s demand curve is P = 250 - 10Q, Person B’s is P = 150 - 10Q, and Person C’s is P = 110 - 10Q. Show graphically and calculate the amount of doctor visits that each person will choose during the year.

Reference no: EM131112424

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