Suppose the figure below shows Luke's demand curve for check-ups along with the supply curve for check-ups. Relative to when Luke has to pay the entire marginal cost of each check-up, the loss of total economic surplus due to first-dollar medical insurance would be ______ per year.
A)$100
B)$200
C)$300
D)$400

Question

Suppose the figure below shows Luke's demand curve for check-ups along with the supply curve for check-ups.  Relative to when Luke has to pay the entire marginal cost of each check-up, the loss of total economic surplus due to first-dollar medical insurance would be ______ per year.
A)$100 
B)$200 
C)$300 
D)$400

Quizplus · Accepted Answer

The Answer of Suppose the figure below shows Luke's demand curve for check-ups along with the supply curve for check-ups.  Relative to when Luke has to pay the entire marginal cost of each check-up, the loss of total economic surplus due to first-dollar medical insurance would be ______ per year.
A)$100 
B)$200 
C)$300 
D)$400

Suppose the Figure Below Shows Luke's Demand Curve for Check-Ups