A consumer’s demand for a medical service is as follows: Q = 100 – PP where PP is the out-of-pocket price she actually faces. She is considering four different insurance options: uninsurance, full insurance, and a copayment plan with a $25 copay.   Assume this service has a list price of PL = $70. Calculate Q under each insurance plan:   uninsured , fully insured , 50% coinsurance , and copayment plan  Do you observe evidence of moral hazard? (yes or no?)

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