Maddie's uninsured demand for care is Q = 400 - 20P. The full price of care is $10 per unit and there is a 20% chance Maddie becomes sick. She consumes no care if she stays healthy. Maddie qualifies for a new insurance plan that had no deductible and a coinsurance rate of 25% (c=0.25). If Maddie joins this health plan, her chance of becoming sick rises to 30%. a. How much care does Maddie demand if she does not join the insurance plan? b. Now suppose Maddie joins the insurance program. What is the equation of Maddie's insured demand curve? How much care will Maddie demand? c. What would be the actuarially fair premium to cover Maddie in this insurance plan? d. What type of moral hazard does Maddie display? Clearly indicate what information you used to reach your conclusions. Maddie's uninsured demand for care is Q = 400 - 20P. The full price of care is $10 per unit and there is a 20% chance Maddie becomes sick. She consumes no care if she stays healthy. Maddie qualifies for a new insurance plan that had no deductible and a coinsurance rate of 25% (c=0.25). If Maddie joins this health plan, her chance of becoming sick rises to 30%. a. How much care does Maddie demand if she does not join the insurance plan? b. Now suppose Maddie joins the insurance program. What is the equation of Maddie's insured demand curve? How much care will Maddie demand? c. What would be the actuarially fair premium to cover Maddie in this insurance plan? d. What type of moral hazard does Maddie display? Clearly indicate what information you used to reach your conclusions