The demand function is Q = 1,000 – (0.5 × P). P is the price paid by consumers. Calculate the…
The insist exercise is Q = 1,000 − (0.5 × P). P is the expense hired by consumers. Number the amount insisted when there is no prophylactic. (Put these values in support DU of the table.)
The say mandates coverage after a while 20 percent coinsurance, aim that the insist exercise becomes 1,000 − (0.5 × 0.2 × P).
a. For each expense, number the amount consumers pay. (Put this condition in support PNet.)
b. Number the amount insisted when there is prophylactic. (Put this condition in support Dr.)
c. Plot the two insist curves, putting P (not PNet) on the perpendicular axis.
d. How do DU and Dr differ? Which is further extensile?