[Figure B] P is the price of a primary care doctor's visit and the demand for these visits is shown in the diagram. If patients have insurance with a copay per visit of F how will revenue to providers change if the insurance company raises the copay per visit from $F to $R? O Revenue will decline by W x p-J O Revenue will decline by (F x W)+(Px (B-W) Revenue will improve by P- (R-F) O Revenue will decline by Px (W-J)

[Figure B] P is the price of a primary care doctor's visit and the demand for these visits is shown in the diagram. If patients have insurance with a copay per visit of F how will revenue to providers change if the insurance company raises the copay per visit from $F to $R? O Revenue will decline by W x p-J O Revenue will decline by (F x W)+(Px (B-W) Revenue will improve by P- (R-F) O Revenue will decline by Px (W-J)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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