5. Demand for Insurance. The next two questions refer to Figure 2 below. Figure 2. .4.mu................................-.-...... Wealth Yl- with Y Graph 1 Graph 2 Suppose individual A and B both have a if: probability of receiving Y and a 'A probability of receiving YL. Individual A is more risk averse than individual B. a. [4 points] Label which of the graphs above describes individual A and individual B's utility function. b. [6 points] Suppose the insurer offers an actuarially unfair, fullinsurance contract. Draw on each of the graphs the maximum administrative costs that each individual would be willing to pay. Is this amount larger for person A or person B