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Suppose that the quantity demanded of visits to a doctor per year is given by X = 12 - 0.05P, where X is the number of visits and P is the price the patient pays for a visit.
a. How many visits would the patient make if he or she had to pay the full price of a visit, $100?
b. How many visits would a patient make if he or she was insured and had to pay only a 20% co-insurance payment per visit?
c. How many visits would a patient make if he or she was insured and had to pay only a 15% co-insurance payment per visit?
d. How many visits would the patient make if medical services were free?
Comment on the role of copay on the number visits made.
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