Refer to Figure 5-4. Answer the following questions:
1. What would be the equilibrium price and quantity if consumers had to pay the full price of medical services?
2. With insurance acting as a third-party payer, what price will consumers pay for medical service?
3. With insurance acting as a third-party payer, what price will doctors receive for medical service?
4. With insurance acting as a third-party payer, what will be the equilibrium quantity of medical services?
5. With insurance acting as a third-party payer, what will be the value of the deadweight loss?
1.$50; 400
2. $25
3. $70
4. 600
5. $4,500
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