Refer to the provided graph. Suppose that it shows the market for an insurance product. If something happens to worsen the adverse selection problem faced by sellers in this market, then
A)the supply curve will shift to the left.
B)the supply curve will shift to the right.
C)the demand curve will shift to the left.
D)the supply curve will not be affected.

Question

Refer to the provided graph. Suppose that it shows the market for an insurance product. If something happens to worsen the adverse selection problem faced by sellers in this market, then
A)the supply curve will shift to the left. 
B)the supply curve will shift to the right. 
C)the demand curve will shift to the left. 
D)the supply curve will not be affected.

Quizplus · Accepted Answer

The Answer of  Refer to the provided graph. Suppose that it shows the market for an insurance product. If something happens to worsen the adverse selection problem faced by sellers in this market, then
A)the supply curve will shift to the left. 
B)the supply curve will shift to the right. 
C)the demand curve will shift to the left. 
D)the supply curve will not be affected.

Refer to the Provided Graph