The Table Gives Supply and Demand Data for a Certain

The table gives supply and demand data for a certain elective surgical procedure. If suppliers provide the quantity of health care demanded and insurance pays one-third of the equilibrium price, there would be a resulting allocative

A) efficiency because, at 7,000 units, the marginal cost to society of $3,000 equals the marginal benefit of $3,000.
B) efficiency because, at 12,000 units, the marginal cost to society is $4,000 and the marginal benefit is $1,000.
C) inefficiency because, at 12,000 units, the marginal cost to society is $5,000 and the marginal benefit is $2,000.
D) inefficiency because, at 12,000 units, the marginal cost to society is $2,000 and the marginal benefit is $5,000.

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