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1.Using the graph below, a.What is the socially efficient amount of medical spending per person?Explain why. b.What amount of medical spending would be demanded by

1.Using the graph below,

a.What is the socially efficient amount of medical spending per person?Explain why.

b.What amount of medical spending would be demanded by an individual with full health insurance (full health insurance means all medical costs are covered by health insurance)?Explain why.

c.From a social efficiency perspective, how much "overconsumption" of health care occurs if individuals are fully insured?Explain your answer.

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