Bobby is offered a job as a salesperson in which there is a 50 percent chance that he will make $2,000 and a 50 percent chance that he will make $10,000. Bobby's utility of wealth curve is shown in the figure above

All of the following are advantages of risk pooling in the health insurance market except

A) it is easier for an insurance company to estimate the average number of claims likely to be filed under a group policy than it is to predict the number of claims likely to be filed under an individual policy. B) by insuring large groups as opposed to individuals, health insurance companies reduce adverse selection. C) individuals who are insured and therefore do not have to pay the full cost of health care services may be inclined to overuse those services. D) it gives very sick people in the pool the same access to health care and pay the same premiums as healthy individuals.

Jim saw a decrease in the quantity demanded for his firm's product from 8000 to 6000 units a week when he raised the price of the product from $200 to $250 . Based on this information, the price elasticity of demand for Jim's product is

a. >1 b. 1 c. <1 d. 0