The inverse demand for health care services is p 500

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The inverse demand for health care services is p 500 - 40

The inverse demand for health care services is P = 500 - 40 Q where P is the price and Q the quantity of health care. The price of services is $100 but insurance covers 80% of it. What is the efficient quantity of health care? What is the DWL when people use insurance? Suppose now that demand is Q = 10 (This is a vertical line).What is the DWL in this case?

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Business Economics: The inverse demand for health care services is p 500 - 40

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Business Economics: The inverse demand for health care services is p 500 - 40

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