Please find attached the question

Type II Diabetes is a costly and potentially debilitating disease. The tola costs inourrem dressinthe disease directly, and complications like nerve damage, amputations, and stroke. Consider a simplified model of the market for health insurance, where diabetes is the only future aple classified as "overweight." Normal weight people face a 20% chance of developing Type Il diabetes in their lifetime, and overweight people a 30% chance. assume individuals spend all their money on consumption, and urc) - any intertemporal considerations of interest rates, inflation or discount factors, i.e. r - 0 . that fully insures them against the lifetime costs of developing diabetes? x (normal weight) - x (overweight) - Submit You have used 0 of 2 attempts Problem PS11.2.2 Suppose insurance companies may measure the weight of an individual prior to offering them an insurance companies are risk-neutral, and that the market for providing insurance is perfectly What prices for insurance contracts will be offered? p (normal weight)- p (overweight) - Who will purchase insurance ? Normal weight individuals [overweight individuals Neither What will be the consumer and producer surplus in this market? (Note: If you round off the exact solutions. thos CS - PS - it You have used O of 2 attempts Problem PS11.2.3 requirement that insurers utilize " community rating ': they must charge everyone the same price . If al individuals purchase insurance, at what price would the insurer break even? she wil purchase insurance at this price? [Normal weight individuals [overweight individuals Neither Given this, what price will insurers actually set? p- What is happening in this market ? O Moral hazard Adverse selection Time-inconsistent preferences Loss aversion ONone of the above What will be the consumer and producer surplus in this market? CS - is policy change? (Emer a positive number for a loss.) DWL - You have used O of 2 attempts Problem PS11.2.4 purchase health insurance. Assuming community rating is still in effect. what wil be the price of insurance? What will be the consumer and producer CS - Simpgrey ! when insurers could measure an individual's weight prior to offering them a contract DWL