Question 2 (10 points) \"'6 \\ slope=-ml(1-ml g- I: 1*". ? Adverse selection in healthcare insurance markets may leave many uninsured as a consequence of market response. A) Explain, using the above graph, what is adverse selection. Why and how would it lead to lack of coverage? (4) B) Why is such exclusion undesirable? Provide a country example with complete market provision, both insurance and provision, but exclusion is eliminated. Explain the mechanism that assures universal access under such a system. (4) C) Explain the coverage and the premium of the contract wL1 in the above graph. Explain the negative externalities involved in this market response. (2)