(Solved):The following table gives the demand curve for doctor visits for Ralph, who doesn’t have health insurance. Assume that Ralph responds only to the amount he must pay out of pocket when deciding how… View Answer…

 

Question

The following table gives the demand curve for doctor visits for Ralph, who doesn’t have health insurance.

Assume that Ralph responds only to the amount he must pay out of pocket when deciding how much care to use.

By filling in the blank lines, calculate Ralph’s new demand curve if he obtained insurance coverage that paid 80 percent of the bill.

If the charges are $100 (i.e., Ralph pays $20 out of pocket),

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