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2) The figure above represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services.
a) If consumers paid the full price of medical services, what is the price they would pay ?
b) If consumers paid the full price of medical services, what would the equilibrium quantity be?
c) With insurance and a third-party payer system, what price do doctors receive for medical services?
d) With insurance and a third-party payer system, what price do consumers pay for medical services?
e) With insurance and a third-party payer system, what is the equilibrium quantity of medical services?
f) What is the efficient price of medical services?
g) What is the efficient quantity of medical services?
h) In this scenario, do insurance and the third-party payer system improve economic efficiency?
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