Suppose Health-Care Reform Y Makes It Unlawful for Insurance Companies

Multiple Choice

Suppose health-care reform Y makes it unlawful for insurance companies to deny insurance to persons with a preexisting disease and sets a fine for those people who do not buy insurance.  It follows that if the fine is

A) larger than the benefits derived from not buying insurance right away, then people will not buy the insurance and pay the fine.
B) smaller than the benefits derived from not buying the insurance right away, then people will not buy the insurance and pay the fine.
C) larger than the benefits derived from not buying insurance right away, then people will buy the insurance right away and not pay the fine.
D) There is not enough information provided to answer this question.