Draw a graph showing how demand for medical care changes under health insurance where the insurance policy pays a % of costs. What happens to demand elasticity? Amount purchased at any price? What does this say about the effect of health insurance on individual vs. social “perceptions” of health care cost and benefit?
Draw a graph showing how demand for medical care changes under health insurance where the insurance policy pays a % of costs. What happens to demand elasticity? Amount purchased at any price? What does this say about the effect of health insurance on individual vs. social “perceptions” of health care cost and benefit?
Chapter7: The Market For Health Insurance
Section: Chapter Questions
Problem 3QAP
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Question
Draw a graph showing how
-
- What happens to demand elasticity?
- Amount purchased at any
price ? - What does this say about the effect of health insurance on individual vs. social “perceptions” of health care cost and benefit?
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