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. .. 3 PM A ell C di... E D Quantity Demanded Qo QA In the figure above, the size of the welfare loss in

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. .. 3 PM A ell C di... E D Quantity Demanded Qo QA In the figure above, the size of the welfare loss in the health insurance market that results from the moral hazard problem: 8 PM O is area C. O would shrink if the health plan added a coinsurance provision. decreases with a health plan There is no welfare loss

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