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Need help to slove this question please Question 3 (25 Points). Adverse Selection (see topic 10): Suppose person i has health risks given by .

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Question 3 (25 Points). Adverse Selection (see topic 10): Suppose person i has "health risks" given by . People can insure against the costs associated with health risks. An equilibrium consists of a market price for health insurance p* = E[|0 6 0] and a set of people 0 = {0 : r(0)

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