Lets say that each diagnostic test costs \$400 to administer. When t.pdf

Julie's private demand for a diagnostic test is Q = 10 - 0.02P, with each test costing \$400 to administer. With health insurance, Julie pays a \$100 co-payment for each test. Given her \$100 co-payment, Julie will request 5 tests, resulting in \$0 of deadweight loss since she will purchase the efficient quantity of tests.

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• 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.)
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