b. How much moral hazard results from this type of insurance IF the supply curve is flat, that is, if horizontal at P = $10,000 per stay, regardless of how many? HINTS: %3D will need to bring out geometry skills to answer this problem. Moral nou hazard equates to the extra (unnecessary quantity). 10,000 100 1000 1200
b. How much moral hazard results from this type of insurance IF the supply curve is flat, that is, if horizontal at P = $10,000 per stay, regardless of how many? HINTS: %3D will need to bring out geometry skills to answer this problem. Moral nou hazard equates to the extra (unnecessary quantity). 10,000 100 1000 1200
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:b. How much moral hazard results from this type of insurance IF the supply curve is
flat, that is, if horizontal at P = $10,000 per stay, regardless of how many?
HINTS:
%3D
will need to bring out geometry skills to answer this problem. Moral
nou
hazard equates to the extra (unnecessary quantity).
10,000
100
1000 1200
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