The following graph shows the market for doctor's office visits. In this market, the central government provides health insurance to all consumers. The government insurance plan stipulates a copayment of $20 per doctor's office visit. That is, consumers pay $20 for each doctor's appointment, and the government pays the remainder. In the absence of the copayment plan, the equilibrium price would be ____ per doctor's office visit, and the equilibrium quantity would be _____ million visits per month. Under the copayment plan, the quantity of visits demanded by consumers is ______ million visits per month. Doctors are willing to supply this number of office visits at a price of ______ per visit. Therefore, the government will pay ______ per visit under the copayment scheme.
The following graph shows the market for doctor's office visits. In this market, the central government provides health insurance to all consumers. The government insurance plan stipulates a copayment of $20 per doctor's office visit. That is, consumers pay $20 for each doctor's appointment, and the government pays the remainder. In the absence of the copayment plan, the equilibrium price would be ____ per doctor's office visit, and the equilibrium quantity would be _____ million visits per month. Under the copayment plan, the quantity of visits demanded by consumers is ______ million visits per month. Doctors are willing to supply this number of office visits at a price of ______ per visit. Therefore, the government will pay ______ per visit under the copayment scheme.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter4: Markets In Action
Section: Chapter Questions
Problem 14SQ
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The following graph shows the market for doctor's office visits. In this market, the central government provides health insurance to all consumers. The government insurance plan stipulates a copayment of $20 per doctor's office visit. That is, consumers pay $20 for each doctor's appointment, and the government pays the remainder.
In the absence of the copayment plan, the
per doctor's office visit, and the equilibrium quantity would be _____
million visits per month.
Under the copayment plan, the quantity of visits demanded by consumers is ______
million visits per month. Doctors are willing to supply this number of office visits at a price of ______
per visit. Therefore, the government will pay ______ per visit under the copayment scheme.
In the absence of the copayment plan, total payments for visits to the doctor amount to ______ million per month.
Under the copayment plan, total payments for visits to the doctor amount to _________ million per month,
million of which is paid by consumers and _____ million of which is paid by the government.
The government copayment plan might lead to an efficient outcome if visits to the doctor's office generate external (costs or benefits) .
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