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Use the figure below to answer the following question. Let IH represent Income when health, let Is represent income when ill. Let E [1,] represent

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Use the figure below to answer the following question. Let IH represent Income when health, let Is represent income when ill. Let E [1,] represent expected income for a given probability (p) of falling ill. Utility L ULIS B Is ELOP In Point X represents actuarially fair & partial contract actuarially unfair & full contract OOO actuarially fair & full contract uninsurance

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