Affect the cost for health insurance companies

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When more people buy the more expensive brand name drugs rather than the cheaper generic drugs, how does this affect the cost for health insurance companies? Hint: We are now looking at the health insurance market, not the health care market.

a. In the graph below, show the appropriate curve shifting

b. State the determinant that causes the shift

c. State the changes in the equilibrium price and equilibrium quantity.

Reference no: EM131169307

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