If the original price of medical care (with no insurance) equal $1,000, the quantity demanded = 10. If insurance (Policy X) is provided, out of pocket drops to $400. Also the quantity of medical care that will be demanded rises to 40. What is the coinsurance rate (or share of the policyholder)?
a. 10%
b. 20%
c. 30%
d. 40%
e.
none of the above