The opportunity to engage in pooling shifts the curve of insurance to the right; insurance companies will take on ________ risk and charge a premium than without
Pooling.
A)supply; more; lower
B)demand; more; lower
C)supply; less; higher
D)demand; less; higher

Question

Quizplus · Accepted Answer

Pooling allows insurance companies to spread risk across a larger group, reducing the risk per individual. This enables them to supply more insurance at a lower premium, shifting the supply curve to the right.

The Opportunity to Engage in Pooling Shifts the Curve of Insurance