Figure 9.6 -Figure 9.6 Represents the Market for Health Insurance. Suppose There

Multiple Choice

Figure 9.6
-Figure 9.6 represents the market for health insurance. Suppose there are two types of consumers, low-cost consumers with $2,000 average medical expenses per year, and high-cost customers with $4,000 average medical expenses per year. The insurance companies estimate that 40% of its customers are high-cost type. The uninformed side(s) of the market is (are)

A) customers.
B) insurance companies.
C) both customers and insurance companies
D) neither customers nor insurance companies.