to 1. You should plot p on the horizontal axis and consumer surplus on the vertical axis.

c Suppose, finally, that this person is offered a subsidy (perhaps from her parents) for buying insurance so that, if she buys insurance, she will be guaranteed an income

γ E[I], where γ >1. With the subsidy, insurance is now actuarially unfair in her favor. Graph how her consumer surplus (M) changes as p, the probability of being sick, varies from