Question
A bill was passed by the government to expand the number of people that could get life insurance. In addition, incentives were created for providers
A bill was passed by the government to expand the number of people that could get life insurance. In addition, incentives were created for providers to enhance their automation ticketing system, which has the potential to lower marginal cost. Assuming both the life insurance numbers and cost-savings are realized, what will happen to the market for life insurance?
A) People will receive more life insurance, but the price could increase, decrease, or stay the same
B) People will receive less life insurance, but the price of life insurance could increase, decrease, or stay the same
C) The price of life insurance will decrease, but the amount of life insurance people will receive could increase, decrease, or stay the same
D) The price of life insurance will increase, but the amount of people that will receive it could increase, decrease, or stay the same\
I want to say it is C because marginal cost lowered, therefore reducing the price in life insurance.
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