How is moral hazard problem relevant to health care market, Microeconomics

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How is moral hazard problem relevant to health care market

Problem

1. Discuss the consumer behavior, explain how health care insurance results in an overallocation of resources to the health care industry. Use a demand and supply diagram to specify the resulting efficiency loss.

2. How is the moral hazard problem relevant to the health care market?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: How is moral hazard problem relevant to health care market

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