3. Consider the figure below Wealth if Sick UH H Wealth if Healthy a. [2 points] Explain why UH is not a valid indifference curve. b. [3 points] Draw a new version of the diagram with the same indifference curve. On the new diagram, label two insurance contracts, A and B, such that A provides more income in both states of the world but the individual with the indifference curve in the diagram nonetheless prefers contract B over contract A. c. [2 points] Draw a new diagram with a version of the indifference curve that represents valid preferences d. [3 points] Is the set of contracts (F, H) a valid separating equilibrium if the high risk individuals have preferences as you have drawn them in part c