Consider Troy and Paula, Each of Whom Recently Purchased Health

question 11

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. With insurance coverage, Troy will visit the physician ____ times.

• A) 18
• B) 10
• C) 6
• D) 5

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Definitions:

Prostaglandin

Class of physiologically active substances present in many tissues; among its effects are vasodilation, stimulation and contraction of uterine smooth muscle and the promotion of inflammation and pain.

Glucocorticoids

These are a class of corticosteroids that play a role in glucose metabolism, anti-inflammatory processes, and immune system modulation.

Congenital Birth Defects

Conditions present at birth that can affect the structure and function of a baby, varying widely from mild to life-threatening.

Teratogen

Any agent or factor that causes malformation of an embryo.