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Suppose the Figure Below Shows Annie's Demand Curve for Physical

Question 9

Multiple Choice

Suppose the figure below shows Annie's demand curve for physical therapy. The marginal cost of each visit to the physical therapist is $150. Suppose the figure below shows Annie's demand curve for physical therapy. The marginal cost of each visit to the physical therapist is $150. Relative to when Annie has to pay the entire marginal cost of each visit, the loss of total economic surplus due to first-dollar medical insurance would be ______ per year. A) $150 B) $1,125 C) $2,250 D) $4,500 Relative to when Annie has to pay the entire marginal cost of each visit, the loss of total economic surplus due to first-dollar medical insurance would be ______ per year.


A) $150
B) $1,125
C) $2,250
D) $4,500

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