Question

Pad 11:52 e 70% Assignments Assignment Moral Hazard Worksheet.pdf II. The 'Nyman' Model Dollars per Unit of Medical Care Demand with Insurance Price P Demand A without Price 0 M (units of medical care) Mi Figure 2 New Analysis of Moral Hazard What letters make up the shape of the value created by health insurance? Color it in, What letters make up the shape of the cost of the moral hazard? Color it in a different color Which is larger? Therefore, insurance results in a welfare (circle one): loss gain 2 of 2 Courses Calendar To Do Notifications Messages

Answer 1

k is excess expenditure and us thus loss which is not justified

value Cred by d nnk er

J is area below demand curve and represents value to consumer