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The Figures Show Two Auto Insurance Markets, One Market for Safe

Question 40

Multiple Choice

The figures show two auto insurance markets, one market for safe drivers and one market for aggressive drivers. -In a pooling equilibrium,aggressive drivers pay a premium of ________ and safe drivers pay a premium of ________. A) $1,000; $1,000 B) $800; $1,200 C) $1,200; $800 D) $1,000; $800 E) $1,200; $1,000
The figures show two auto insurance markets, one market for safe drivers and one market for aggressive drivers.
-In a pooling equilibrium,aggressive drivers pay a premium of ________ and safe drivers pay a premium of ________.


A) $1,000; $1,000
B) $800; $1,200
C) $1,200; $800
D) $1,000; $800
E) $1,200; $1,000

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