Health insurance markets have a problem with insuring people who are "poor health risks" while many people who are "good health risks" do not buy insurance. This problem is an example of

According to the theory of propitious selection:

a. risk-neutral people are more likely to opt for insurance coverage. b. risk-averse people are more likely to opt for insurance coverage. c. high-risk people submit large claims for insurance coverage. d. high-risk people submit smaller claims for insurance coverage.

When comparing price elasticities of demand in the long run to the short run, what can we say about the long-run elasticities?

a. Within every price range, the price elasticity of demand is more elastic. b. Consumers are less sensitive to price changes. c. Consumers are inclined to make fewer adjustments to quantity demanded when price changes d. Within every price range, the price elasticity of demand is less elastic. e. Because consumers had more time to adjust to a price decrease or increase, their reaction to either is much smaller.