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6. Suppose we have two (2) youths, Ether and jackson, Ethel has a risk averse personality such that she is very cautious with her life.
6. Suppose we have two (2) youths, Ether and jackson, Ethel has a risk averse personality such that she is very cautious with her life. She even has phobia of driving a car at a speed of 70km/hour On the other hand, Jackson a one person who enjoys driving sports cars and engages so much in risky-seeking activities if the behavioral information of the 2 youths is used as a market signal to insurers, kindly show how separating equilibria can vividly indicate which aparapnate insurance policies can be purchased by Ethel and Jackson (8 marks)
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