b. How much moral hazard results from this type of insurance IF the supply curve is flat, that is, if horizontal at P = $10,000 per stay, regardless of how many? HINTS: %3D will need to bring out geometry skills to answer this problem. Moral nou hazard equates to the extra (unnecessary quantity). 10,000 100 1000 1200
b. How much moral hazard results from this type of insurance IF the supply curve is flat, that is, if horizontal at P = $10,000 per stay, regardless of how many? HINTS: %3D will need to bring out geometry skills to answer this problem. Moral nou hazard equates to the extra (unnecessary quantity). 10,000 100 1000 1200
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: The Basic Tools Of Finance
Section: Chapter Questions
Problem 4CQQ
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