1. Four treatment options exist to treat a particular condition. Each treatment is effective at curing the condition, but medical evidence indicates patient recovery times vary across the different options. Assume the condition is very painful, so all patients would be willing-to-pay at least $4000 for Treatment A. Treatment Treatment Price Mean Expected Recovery Time (medical evidence) 5 weeks 2 weeks $4000 B $10,000 2.5 weeks $12,000 D 1 week $20,000 a) In a world without health insurance, explain why rational, fully informed patients could make different treatment choices in this scenario. Put another way, what treatment choices are plausibly rational, and what can we say about the patients who make each choice? b) In a world where insurance covers 80% of everyone's treatment expenses, how are those treatment decisions likely to change? Be as specific as you can. c) Suppose Treatment C is a medical procedure and the other treatments options are prescribed medications. How might that fact influence the treatment choices we observe in the "real world