12.The federal agency responsible for covering the cost of dental care for low-income seniors has set a rate of $100 for various dental treatments. In addition to these seniors, dentists have patients who pay for their dental services. The demand curve for each dentist is shown below.

Out-of-Pocket PriceQuantity of Dental

Treatments Demanded

$1600

1453

1306

1159

10012

8515

7018

Each dentist also has a cost schedule, as shown below.

Quantity of Dental

Treatments Demanded Total Cost

0$ 250

3350

6550

9850

121,250

151,750

182,350

a.If each dentist in this system works on a profit-maximizing basis, how many treatments will be provided to both the paying patients and to the federally funded seniors? (Show your work by tabulating appropriate columns for TR and TC, as well as for MR and MC.) 8 marks

b.What would the number of paying patients and federally funded seniors be if the federal funding agency raised its rate to $120 per treatment? (Show all your work.) 4 marks