2) Suppose that the market for heath care is structured as follows: 1) all medical procedures have a cost of $100, yet a person with health insurance pays only $20 out-of-pocket when she chooses to have an additional procedure performed. The insurance company pays the remaining $80. (Note: The company will recoup the $80 through higher premiums for everybody but the share paid by this individual of the cost of each additional service is small.) a) Draw the demand curve for medical care. Show the quantity of procedures demanded if each procedure has a price of $100. In addition, show the quantity of procedures if the consumer pays $20 per procedure out of pocket. Will the quantity of services in the health insurance case maximize total surplus? b) If the cost of each procedure to society is truly $100, and if individuals have health insurance as just described, will the number of procedures be Pareto efficient? Why or why not? Would you say the market for health insurance is consistent with the First Welfare Theorem? Why or why not