Solve clearly

D Question 21 3 pts Suppose Logitech (an electronics company) offers an extended warranty for a product. If the product tends to fail 2% of the time, the claim rate will exceed 2% of warranty purchasers because... O adverse selection will lead those who are more reckless to purchase the warranty O moral hazard will lead those who purchase to be more reckless O you systematically underestimate product failure rates O Both A&BD Question 16 2.5 pts The presence in adverse selection in insurance markets would mean that.... O potential customers face different levels of risk O potential customers facing more risk are no more interested in purchasing insurance O people are not risk averse O insurers can tell higher risk people from lower risk people