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

Question

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

Quizplus · Accepted Answer

The Answer of 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

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