Explore BrainMass

Explore BrainMass

    How will each of the following affect the supply for insuran

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    How will each of the following affect the supply for insurance?
    a. a larger pool of insured persons
    b. lower administration costs for insurance companies
    c. higher premiums (with no change in risk experience)
    d. a greater degree of risk aversion on the part of insurers

    © BrainMass Inc. brainmass.com June 4, 2020, 2:17 am ad1c9bdddf
    https://brainmass.com/economics/personal-finance-savings/each-following-affect-supply-insurance-450538

    Solution Preview

    a. a larger pool of insured persons

    A larger pool of insured persons will cause the supply of insurance to increase, because the cost of the insurance decreases with a coordinating increase in demand.

    b. lower administration costs for insurance companies

    Lower costs for the insurance companies will cause the ...

    Solution Summary

    How will each of the following affect the supply for insurance?
    a. a larger pool of insured persons
    b. lower administration costs for insurance companies
    c. higher premiums (with no change in risk experience)
    d. a greater degree of risk aversion on the part of insurers

    $2.19

    ADVERTISEMENT