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    Exam 9: Imperfect Information, External Benefits, and External Costs
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    Suppose That Everybody Pays the Same Price for Auto Insurance
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Suppose That Everybody Pays the Same Price for Auto Insurance

Question 57

Question 57

Essay

Suppose that everybody pays the same price for auto insurance. What should happen to the price of insurance if the law changes from a system where there is mandatory auto insurance to one where there is voluntary auto insurance?

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When auto insurance becomes voluntary, m...

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