Suppose That the Quantity Demanded of Visits to a Doctor

question 20

Essay

Suppose that the quantity demanded of visits to a doctor per year is given by X = 12 - 0.05P,where X is the number of visits and P is the price the patient pays for a visit.
(a)How many visits would the patient make if he or she had to pay the full price of a visit,$100?
(b)How many visits would a patient make if he or she was insured and had to pay only a 15% co-insurance payment per visit?
(c)How many visits would the patient make if medical services were free?

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Definitions:

Henry George

A 19th-century American economist and writer known for his belief that individuals should own the value they produce but that land and natural resources should belong to all (the single tax theory).

Single Tax

Concept of taxing only landowners as a remedy for poverty, promulgated by HenryGeorge in Progress and Poverty (1879).

Inequality

The state of being unequal, especially in terms of rights, status, and opportunities among different groups of people in society.

Andrew Carnegie

A Scottish-American industrialist and philanthropist who led the expansion of the American steel industry in the late 19th century and is often identified as one of the richest people in history.