QUESTION 5 If the original price of medical care (with no insurance) equal $1,00

Question

QUESTION 5

If the original price of medical care (with no insurance) equal $1,000, the quantity demanded = 10. If insurance is provided, out of pocket drops to $300. Also the quantity of medical care that will be demanded rises to 40. Is there a social loss due to insurance?

Yes

No

not sure

none of the above

3 points   

QUESTION 6

From the previous problem if there is social loss how much is it?

there is no social loss

$21,000

$10,500

$3,500

none of the above

Yes

No

not sure

none of the above

Explanation / Answer

5: C

6: A

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