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...

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.

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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Jun 10, 2022

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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...

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