##### Suppose, if ill, that Fredâ€™s demand for health services is summarized by the demand curve Q = 50 â€“ 2P, where P is the price of services. How many services does he buy at a U = 20Ywhere U is utility and Y is income per month. price of $20? Suppose that Fredâ€™s probability of illness is 0.25. What is the actuarially fair price of health insurance for Fred with a zero coinsurance rate? 8. In Exercise 7, if the insurance company pays Fredâ€™s entire loss, what will Fredâ€™s expenses be? How much will the company pay? Will it continue to offer him insurance at the actuarially fair rate? Why?

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Elias2021-02-24 05:35:522021-02-24 05:35:52Suppose, if ill, that Fredâ€™s demand for health services is summarized by the demand curve Q = 50 â