Suppose that the market demand for medical care is summarized by the following function: P=400-2Q And the market supply is summarized by the following function: P=50+3Q
A) Calculate the equilibrium price, assuming no health insurance is available.
B) Calculate the equilibrium quantity, assuming no health insurance is available.
C) Suppose that health insurance is made available with no deductible and a 25% coinsurance rate. Calculate the new equilibrium price.
D) Suppose that health insurance is made available with no deductible and a 25% coinsurance rate. Calculate the new equilibrium quantity.