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Assume people have become sick and earn less money: What would happen to the demand for insurance (will the curve shift? if so, how?) if

Assume people have become sick and earn less money: What would happen to the demand for insurance (will the curve shift? if so, how?) if those people are risk averse?

(ignore the first problem for this question) Assume people are in good health, but they have bought insurance. What would be the externality for society/economy?

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