Modified Mastering Microbiology wit
6th Edition
ISBN: 9780135174739
Author: BAUMAN
Publisher: PEARSON
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Price of
visit
Number of
visits
$700
0
$600
[1
$500
2
$400
3
$300
4
00000
The Table blow gives the demand curve for doctor visits for Elena. If the price of a doctor's visit is $600, and Elena does not have health insurance, she will visit the doctor
times. If Elena obtains 50% coinsurance (the company pays 50% of the medical bill, Elena pays 50%), then Elena will visit the doctor times.
1; 2
0; 3
0; 2
1;4
2; 1
P
200
150-
100
50
w/instrance/
w/insurance 2
100
Demand
Assume that the white curve (labeled "Demand") represents an individual's true demand for this particular health care service. The coinsurance associated with insurance option
1 (in blue) is likely _.
0000
100%
25%
50%
0%
Use the figure below. Bob and Nancy have the same income and total utility..
willingness to pay for an insurance premium will be lower than
because they are.
risk-
averse.
Total
utility
Current
utility
Bob's utility
Nancy's utility
0000
Bob; Nancy; less
Nancy; Bob; less
Nancy; Bob; more
Bob; Nancy; more
Current
Income
income
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