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Fair price of health insurance for fred

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Reference no: EM131234926

Suppose, if ill, that Freds demand for health services is summarized by the demand curve Q=50-2P, where P is the price of services. How many services does he buy at a price of $20? Suppose that Fred's probability of illness is 0.25. What is the actuarially fair price of health insurance for Fred with a zero coinsurance rate?

Reference no: EM131234926

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