Can you answer both parts to this question please? I am so confused. Thank you. The following table gives the demand curve for doctor visits for Ashlee. If the price of a doctor's visit is $600, andAshlee does not have health insurance, she will visit the doctor_times. If Ashlee obtains 80% coinsurance (thecompany pays 20% of the medical bill, Ashlee pays 80% of the medical visit), then Ashlee will visit the doctortimes.Price of visit Number of visits$600$550$500$450$4001;20; 20; 42; 11:40112314 The table shows the utility Tia receives at various income levels, but she does not know what her income will be nextyear. There is a 10% chance her income will be $20,000, a 30% chance her income will be $30,000, and a 60% chanceher income will be $40,000. We know that Tia is risk-averse because:Table: Utility and Income Levels for TamaraIncome LevelUtility Level (utils)$20,0002,50025,00026,51628,00029,00030,0003,0003,14431,00035,00040,0003,2703.3503,4203,4803,6803,880her expected income is less than what she may actually earn.she would prefer $40,000, but there is a risk she will make only $20,000.she experiences diminishing marginal utility of income.her expected income is more than what she may actually earn.

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The following table gives the demand curve for doctor visits for Ashlee. If the price of a doctor's visit is $600, and Ashlee does not have health insurance, she will visit the doctor times. If Ashlee obtains 80% coinsurance (the company pays 20% of the medical bill, Ashlee pays 80% of the medical visit), then Ashlee will visit the doctor times. Price of visit Number of visits $600 0

The following table gives the demand curve for doctor visits for Ashlee. If the price of a doctor's visit is $600, and Ashlee does not have health insurance, she will visit the doctor times. If Ashlee obtains 80% coinsurance (the company pays 20% of the medical bill, Ashlee pays 80% of the medical visit), then Ashlee will visit the doctor times. Price of visit Number of visits $600 0

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.7P

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