Please answer question 45 and provide explanation

- 11 - Items 43 - 45 refer to the diagram below which shows the demand for and supply of health care in a particular market. Price S = MSC P1- P2 - - P3 - - D = MSB Q2 Q3 21 Quantity 43. If there is no health care insurance what would be the equilibrium price and quantity of health care? (A) P, and Q (B) P, and Q (C) P, and Q (D) P, and Q, 44. If a health insurance company offers to pay 45 half the cost of health care, what would be What effect will the intervention of the the price and quantity demanded by the insurance company in the market have on efficiency and social welfare? consumer? (A) Allocationefficiency will occur (A) P, and Q (B) P, and Q, because consumers derive more (C) (D) P, and Q health care services at Q,. P, and Q, (B) Allocation inefficiency will occur because at Q, MSB is greater than MSC. (C) Allocationefficiency will occur because at Q, MSB is equal to MSC. (D) Allocationinefficiency will occur because at Q, MSC is greater than MSB