(Solved): 8. The impact of health insurance The following graph shows the market for doctor's office visits ...

8. The impact of health insurance The following graph shows the market for doctor's office visits. In this market, the central government provides health insurance to consumers. The government insurance plan stipulates a copayment of \( \$ 20 \) per doctor's office visit. That is, consumers pay \( \$ 20 \) for each doctor's appointment, and the government pays the remainder. In the absence of the copayment plan, the equilibrium price would be per doctor's office visit, and the equilibrium quantity would be million visits per month. Under the copayment plan, the quantity of visits demanded by consumers is million visits per month. Doctors are willing to supply this number of office visits at a price of per visit. Therefore, the government will pay under the copayment scheme. In the absence of the copayment plan, total payments for visits to the doctor amount to million per month. Hint: You can use the green rectangle (triangle symbols) to calculate areas in the graph. You will not be graded on where you place the green rectangle. Under the copayment plan, total payments for visits to the doctor amount to million of which is paid by consumers and million of which is paid by the government. The government copayment plan might lead to an efficient outcome if visits to the doctor's office generate external