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c} [4 points] Draw a graph similar to the one above containing the demand function, MC function, and AC functions. For each function indicate the
c} [4 points] Draw a graph similar to the one above containing the demand function, MC function, and AC functions. For each function indicate the values of the vertical intercepts on the left iH=Ol and right lH=1] sides of the graph. Clearly label the deadweight loss. d} [2 points] What is the equilibrium price p* of the insurance plan in this market? e) [2 points] Calculate the size of the deadweight loss from adverse selection in the insurance market. Now suppose an individual insurance mandate is imposed that forces all consumers to purchase insurance or else pay a tax of $250. f} [4 points] What will the insurance mandate do to the equilibrium price of insurance? g] [3 points] What is the effect of the mandate on the deadweight loss from adverse selection in the market? What is the gain in consumer surplus from lowered prices? What is the loss in consumer surplus from the mandate
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