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a) Suppose this uninsured person now has health insurance coverage for inpatient care. The health insurance coverage consists of a copayment of p-bar, which is
a) Suppose this uninsured person now has health insurance coverage for inpatient care. The health insurance coverage consists of a copayment of p-bar, which is less than p1. On the graph, show the effect of health insurance coverage on the demand for inpatient care. Label the social loss from moral hazard. Why is there a social loss? Explain in a sentence. (10 points)
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