Consider the figure below. Suppose the true price of a health care service is $50. Suppose further that the individual has obtained insurance that has a fixed copayment for this particular service. The copayment is represented by price $30. The social loss from moral hazard is equal to (Quick math tip: You might recall the following: Area of a Triangle base x height) 00000 $50 $30 Price $750 $500 $1000 $30 $300 10 40 = - Quantity
Consider the figure below. Suppose the true price of a health care service is $50. Suppose further that the individual has obtained insurance that has a fixed copayment for this particular service. The copayment is represented by price $30. The social loss from moral hazard is equal to (Quick math tip: You might recall the following: Area of a Triangle base x height) 00000 $50 $30 Price $750 $500 $1000 $30 $300 10 40 = - Quantity
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider the figure below. Suppose the true price of a health care service is $50. Suppose further that the individual has
obtained insurance that has a fixed copayment for this particular service. The copayment is represented by price $30.
The social loss from moral hazard is equal to
(Quick math tip: You might recall the following: Area of a Triangle
base x height)
$50
$30
Price
$750
$500
$1000
$30
$300
10
40
=
Quantity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F92d13e7a-55ed-4295-b91a-cbfac319b8b3%2F3f687f94-e96c-4b5f-b382-e03c948d2d42%2Fwe8t6g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2
Consider the figure below. Suppose the true price of a health care service is $50. Suppose further that the individual has
obtained insurance that has a fixed copayment for this particular service. The copayment is represented by price $30.
The social loss from moral hazard is equal to
(Quick math tip: You might recall the following: Area of a Triangle
base x height)
$50
$30
Price
$750
$500
$1000
$30
$300
10
40
=
Quantity
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