2. Does offering catastrophic health insurance reduce or increase moral hazard? With the help of graphical tools, explain your answer. (Hint: will catastrophic insurance rotate or shift the demand curve?) [5 points] 3. Referring to the diagram below, briefly explain the differences between the two demand curves below, and explain how they affect moral hazard differently, and why. Further state how the differences in the two demand curves are related to Nyman's critique of conventional demand theory of health insurance. Explain the concept of efficient and inefficient moral hazard. [6 points] Price rm MC Quantity