Suppose that when a consumer becomes sick, his cost of medical care is 100. But his probability of becoming sick is either p = 0.25 or p = 0.75, each with a probability 0.5. An insurance contract must cover the cost of 100 when a consumer becomes sick. In a compet- itive market, the premium must earn a zero expected profit. Suppose that in a competitive equilibrium only the consumer with p = 0.75 will buy the equilibrium policy. What is the equilibrium premium? Suppose that in a competitive equilibrium each type of the consumer, with p = 0.25 and 0 75 will buy the policy What is the equilibrium premium