The equilibrium quantity and price are:
2000 - 4Q = 1000 + Q,
5Q = 1000,
Q = 200 units,
P = 1000 + 200 = 1200.
Consumer surplus is:
CS = 0.5×(2000 - 1200)×200 = 80,000.
Producer surplus is:
PS = 0.5×(1200 - 1000)×200 = 20,000.
With the coinsurance the deadweight loss will occur.
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