Give typing answer with explanation and conclusion  Suppose that a consumer’s demand curve for medical care is QD = −3P +17 with P = $5. Suppose that the beneficiary obtains an insurance plan through an insurer with a 25% coinsurance rate. Under the insurance arrangement, find the following:   (a) Equilibrium price and quantity of medical care?   (b) Magnitude of deadweight loss?   (c) Cost to the beneficiary?   (d) Cost to the insurer?

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter12: Medicare
Section: Chapter Questions
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Give typing answer with explanation and conclusion 

Suppose that a consumer’s demand curve for medical care is QD = −3P +17 with P = $5. Suppose that the beneficiary obtains an insurance plan through an insurer with a 25% coinsurance rate. Under the insurance arrangement, find the following:

 

(a) Equilibrium price and quantity of medical care?

 

(b) Magnitude of deadweight loss?

 

(c) Cost to the beneficiary?

 

(d) Cost to the insurer?

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