The availability of health insurance tends to:
A. decrease the quantity of health care demanded and cause an underallocation of resources
to the health care industry.
B. increase the quantity of health care demanded and cause an underallocation of resources
to the health care industry.
C. increase the quantity of health care demanded and cause an overallocation of resources to
the health care industry.
D. decrease the quantity of health care demanded and cause an overallocation of resources
to the health care industry.
Answer: C
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