Refer to Figure 7-6. 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

Economics

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Use the above figure. Refer to the above diagram where curves (a) through (d) are for four different countries. Income is equally distributed in

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Economics