Consider Troy and Paula, Each of Whom Recently Purchased Health

question 15

Multiple Choice

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. Without insurance coverage, Troy will make ____ physician visits.

• A) 12
• B) 10
• C) 6
• D) 5

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Definitions:

Outliers

Data points that significantly differ from the others in a data set.

Range

The difference between the highest and lowest values in a dataset.

Range

The difference between the highest and lowest values in a set of data, indicating the spread of values.

Mathematical Difference

The result of subtracting one quantity from another.