Veronica Was Recently Diagnosed with a Heart Condition

question 107

Multiple Choice

Veronica was recently diagnosed with a heart condition.Her doctor's bill was $4,200 for the diagnostics.Her policy has a $250 deductible and a 80/20 coinsurance provision up to $10,000 and then the insurance pays 100% thereafter.In total,how much will Veronica pay for her diagnosis?

• A)$250
• B)$4,200
• C)$1,040
• D)$10,000

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Definitions:

Consumer Equilibrium

A state where a consumer has allocated their income in a way that maximizes their utility, given the prices of goods and services.

Total Utility

The complete satisfaction or happiness a consumer derives from consuming a particular quantity of goods or services.

Consumer Equilibrium

A state where a consumer has allocated their income in a way that maximizes their utility, given their budget constraints and the prices of goods and services.

Total Utility

The entire satisfaction or pleasure a consumer obtains from consuming a given quantity of goods or services.