Can you answer both parts to this question please? I am so confused. Consider the figure below. Suppose the true price of a health care service is P1. Suppose further that the individualhas obtained insurance that has a fixed copayment for this particular service. The copayment is represented by priceP2. The social loss from moral hazard if the individual has copayment P2 is represented graphically by the area(s):Health Care ServiceP.P₁bfdd+ea(Q₁ga+b+ch4 Consider the figure below. Suppose the true price of a health care service is P1. Suppose further that the individualhas obtained insurance that has a fixed copayment for this particular service. The copayment is represented by priceP2. represents the quantity of the service the individual would consume without insurance. __represents thequantity of the service the individual would consume with the insurance.Health Care ServicePP₁P₂fQ.gQ3; Q1Q2; Q3Q1; Q3Q2; Q1Q1; Q2Q₂ Q3 DQ₂

Introduction A condition known as "moral hazard" occurs when one party engages in a risky activity…

Consider the figure below. Suppose the true price of a health care service is P1. Suppose further that the individua has obtained insurance that has a fixed copayment for this particular service. The copayment is represented by pri- P2. The social loss from moral hazard if the individual has copayment P2 is represented graphically by the area(s): Health Care Service OOOO 2² b f 9 d d+e a+b+c a 'D ->Q

Consider the figure below. Suppose the true price of a health care service is P1. Suppose further that the individua has obtained insurance that has a fixed copayment for this particular service. The copayment is represented by pri- P2. The social loss from moral hazard if the individual has copayment P2 is represented graphically by the area(s): Health Care Service OOOO 2² b f 9 d d+e a+b+c a 'D ->Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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