1.Traders from the faraway nation of Chplandia have brought infected goods to market in the capital of Pcoria. As a result, a new infectious disease called chpitis is spreading through the Pcorian population. Chpitis is not fatal but leaves victims severely disfigured for the remainder of their lives.

a.Suppose that the Pcorian government enrolls all its citizens in the Universal Insurance Program which pays (with 5% coinsurance) for any treatment. So the ointment costs patients only $2,500 out of pocket. Will a 25-year-old chpitis victim still decide to get the ointment? What about a 60-year-old chpitis patient? What about a 69-year-old chpitis patient?