Consider Troy and Paula, each of whom recently purchased health insurance with a 20% coinsurance rate (i.e., an insured person pays 20% of the price of a physician visit). Troy's demand curve for physician visits is Q_R = 6, and Paula's demand curve for physician visits is Q_P = 20 - 0.10P, where Q represents the number of physician visits and P is the price per visit. Suppose that the market price, P, for physician visits is $100. With a 20% coinsurance rate and a market price of $100, Paula pays $____ out-of-pocket per visit. A) 40 B) 30 C) 20 D) 10

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Quizplus · Accepted Answer

With a 20% coinsurance rate and a market price of $100, Paula pays 20% of $100 out-of-pocket per visit, which is $20.

Consider Troy and Paula, Each of Whom Recently Purchased Health