The demand for insurance depends on the level of A. risk aversion. B. risk smoothing. C....

The demand for insurance depends on the level of

A. risk aversion.

B. risk smoothing.

C. risk pooling.

D. risk premium.

Solutions

Expert Solution

Risk aversion

If risk aversion is high, then demand for insurance will be higher, and if risk aversion is lower then demand for insurance is lowe

jeff jeffy answered 2 years ago

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