The Question is attached below:

Consider two cities Where there are three types of people Who want to buy disability insurance. The low-risk type (L) have a 8% chance of being disabled, the medium risk type (M) have a 15% chance of being incapacitated and the high risk type (H) have a 45% chance of being disabled. In city A, 50% of the population is of type L, 40% are of type M and 10% are of type H. In city B, 10% of the population is of type L, 60% are of type M and 30% are of type H. Long-term care insurance provides income if they are incapacitated for the rest of their life (there are no additional costs). Individuals have the following utility function over consumption (or income): u(c) = 111(6) Individuals earn 500/- if healthy, but only 5/- if incapacitated. They make the decision to purchase insurance before the event occurs. a. The insurance company decides to sell full insurance to all types in both the cities at a premium of 85/. Which types buy in city A. What about city B? b. What is the prot earned by the company in city A? What is the prot earned in city B