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Let's say that each diagnostic test costs $400 to administer. When the price is P and the number
of tests is Q, Julie's private demand for the test is Q = 10 - 0.02P. Julie has health insurance, and
she must pay a co-payment of $100 for the test.
The number of diagnostic tests Julie will request is ______ given her co-payment amount.
The deadweight loss associated with Julie's decision of the number of tests to receive given the
cost she must pay is $______, assuming there are no externalities associated with giving or
receiving the test. (If necessary, round entries to the nearest whole number and enter only
numbers.)

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Diagnostic Test Demand and Deadweight Loss Given Costs and Insurance Co-Payment

  • 1. Let's say that each diagnostic test costs $400 to administer. When the price is P and the number of tests is Q, Julie's private demand for the test is Q = 10 - 0.02P. Julie has health insurance, and she must pay a co-payment of $100 for the test. The number of diagnostic tests Julie will request is ______ given her co-payment amount. The deadweight loss associated with Julie's decision of the number of tests to receive given the cost she must pay is $______, assuming there are no externalities associated with giving or receiving the test. (If necessary, round entries to the nearest whole number and enter only numbers.)