Refer to the below graph of a hypothetical market for health care. The efficiency loss caused by the provision of health insurance covering four-fifths of the cost is:

Graphically we can illustrate a firm with price setting ability by drawing its demand curve as ________

A) downward sloping B) upward sloping C) horizontal D) vertical

If prices rise on average in the U.S. economy, the purchasing power of a dollar declines

Indicate whether the statement is true or false