[Figure B] P is the price of a primary care doctor's visit and the demand for these visits is shown in the diagram. If patients have insurance with a copay per visit of F how will revenue to providers change if the insurance company raises the copay per visit from $F to $R? O Revenue will decline by W x p-J O Revenue will decline by (F x W)+(Px (B-W) Revenue will improve by P- (R-F) O Revenue will decline by Px (W-J)
[Figure B] P is the price of a primary care doctor's visit and the demand for these visits is shown in the diagram. If patients have insurance with a copay per visit of F how will revenue to providers change if the insurance company raises the copay per visit from $F to $R? O Revenue will decline by W x p-J O Revenue will decline by (F x W)+(Px (B-W) Revenue will improve by P- (R-F) O Revenue will decline by Px (W-J)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST7: The Economics Of Health Care
Section: Chapter Questions
Problem 1CQ
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