Predict from the point of view of adverse selection

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Reference no: EM131108335

Predict from the point of view of adverse selection and moral hazard how the following conditions will affect behavior.

1) Cars getting into accidents when airbags are introduced.

2) Food consumption on "all-you-can-eat" night at a restaurant.

3) Telephone volume with unlimited calling plans.

Reference no: EM131108335

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