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In a Particular Insurance Market,there Is a Decrease in the Degree

question 114

Multiple Choice

In a particular insurance market,there is a decrease in the degree of risk aversion among suppliers.Holding everything else constant,the equilibrium premium will _____ and the equilibrium quantity of insurance will _____.


Definitions:

Excessive Rate

A rate that is significantly higher than what is considered normal or acceptable.

Depth of Breathing

Refers to the extent of thoracic expansion and diaphragm movement during inhalation, affecting the volume of air taken into the lungs.

Celsius

A temperature scale where water turns to ice at 0 degrees and reaches boiling point at 100 degrees, given normal atmospheric conditions.

Fahrenheit

A scale of temperature where water freezes at 32 degrees and boils at 212 degrees under standard conditions.

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