1. Review some of the factors that influence the price of healthcare insurance anddiscusstheimpact on demandforservices.Supposeaperson isconsideringthepurchase of a health insurance policy with a premium of $4,000 per year. Forsimplicity, assume that it covers all costs (i.e. there are no patient cost-sharingrequirements). Further, assume that she/he does not have any coverage optionsfrom her/hisemployerorspouse.Afterconducting someresearch, he findsthata person of his age and health status spends, on average, $3,500 on healthcareservices. Explain why such a purchase might be economically rational. Can youthink of an instance where it might not be rational for her/him to purchase thecoverage?