If the price of a medical visit is 300acalculate the

Reference no: EM13379233

If the price of a medical visit is $300,

a)calculate the equilibrium number of visits, and total expenditures.

b) Suppose that the consumer purchases an insurance policy that allows her to pay a 25% coinsurance rate. Calculate the new equilibrium number of visits and the total expenditures.

c) Calculate the expenditures by the insurer.

d) Calculate the increased well-being to the consumer due to the changed number of visits.

e) Calculate the "loss" to society brought about by moral hazard. Explain why it is a loss.

Reference no: EM13379233

Questions Cloud

Assume the elasticity of demand for chewing tobacco is 60 : assume the elasticity of demand for chewing tobacco is .60 and the elasticity of supply is 2.30. suppose an

Suppose the consumer has 100 to spend on consumptionnow c1 : suppose the consumer has 100 to spend on consumptionnow c1 or consumption next year c2. any money not spent now can be

An alternative interpretation of ricardian equivalencethe : an alternative interpretation of ricardian equivalence?the government and the representative consumer each live for

The supply function is given by p q 10the demand function : the supply function is given by p q 10.the demand function is given by p 50 - 3q.a sketch these two functions on a

If the price of a medical visit is 300acalculate the : if the price of a medical visit is 300acalculate the equilibrium number of visits and total expenditures.b suppose that

Roger has the following utility function with respect to : roger has the following utility function with respect to wealthu 20w - 0.4w2.roger starts with w 25.a plot the

Suppose an investor has the utility function urs r - 03s2 : suppose an investor has the utility function urs r - 0.3s2 here r denotes the expected rate of return r of their

In the macroeconomics book by stephen williamson 5th : in the macroeconomics book by stephen williamson 5th edition in the appendix for ch. 7-8 problem 1 the problem asks

Suppose a consumer has 150 to spend on food and clothing : suppose a consumer has 150 to spend on food and clothing. food costs 4 per unit and clothing costs 5 per unit. the

User Account

All Pages