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    Microeconomics Principles Applications
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    Exam 14: Imperfect Information: Adverse Selection and Moral Hazard
  5. Question
    -Refer to Figure 14
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-Refer to Figure 14

Question 12

Question 12

Multiple Choice

  -Refer to Figure 14.1.If the price of insurance is $7,500,then A)  50% of the consumers will be high-cost. B)  25% of the consumers will be low-cost. C)  75% of the consumers will be high-cost. D)  100% of the consumers will be high-cost.
-Refer to Figure 14.1.If the price of insurance is $7,500,then


A) 50% of the consumers will be high-cost.
B) 25% of the consumers will be low-cost.
C) 75% of the consumers will be high-cost.
D) 100% of the consumers will be high-cost.

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