Consider Troy and Paula, Each of Whom Recently Purchased Health

Multiple Choice

Consider Troy and Paula, each of whom recently purchased health insurance with a 20% coinsurance rate (i.e., an insured person pays 20% of the price of a physician visit) . Troy's demand curve for physician visits is Q_R = 6, and Paula's demand curve for physician visits is Q_P = 20 - 0.10P, where Q represents the number of physician visits and P is the price per visit. Suppose that the market price, P, for physician visits is $100. Without insurance coverage, Paula will make ____ physician visits.

A) 12
B) 10
C) 6
D) 5