Refer to the figure below. Assume demand remains unchanged at D1. If supply shifts from S2 to S1, then the equilibrium price will ________ and the equilibrium quantity will ________. 

When people purchase health insurance and then change their behavior after the purchase because the insurance protects them from loss, the health insurance market is said to face the problem of

A) asymmetric information. B) moral hazard. C) adverse selection. D) the rationality paradox.

A market failure occurs when

A) price equals marginal cost. B) there is a non-optimal allocation that leads to an inefficient market. C) deadweight loss is maximized. D) a firm shuts down.