1. sketch a graph of the perfect information equilibrium in an insurance market with two types

of consumers, sick and healthy.

2.

Why won't the perfect information equilibrium work when health status is private

information.

3.

Sketch a graph of a potential pooling equilibrium and explain why it won't work.

4.

Sketch a graph of a separating equilibrium that works.

5.

Sketch a graph of a separating equilibrium that does not wo