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Price Po P A E Qo is area C. decreases with a health plan. D In the figure above, the size of the welfare loss

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Price Po P A E Qo is area C. decreases with a health plan. D In the figure above, the size of the welfare loss in the health insurance market that results from the moral hazard problem: B would shrink if the health plan added a coinsurance provision. There is no welfare loss. Quantity Demanded

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