Could you please provide step by step solution for these questions? If you provide a clear explanation, I would be very grateful. Thanks in advance!

Question 1 A risk averse individual faces uncertainty with two outcomes: good, bad. The individual has income $560 under good and $350 under bad outcome. The probability of good outcome is 4/7 (so the probability of bad outcome is 1 4/7 = 3/7). The individual can buy any non-negative x units of insurance. Every unit of insurance has price $p and it pays $1 in the event of bad outcome. In this insurance market, the unit price of insurance is known to be p = 1/2. (a) [2 points] Determine if the insurance market is competitive or not. (b) [6 points] Suppose the individual buys x units of insurance. Determine the individual's net income under good income, net income under bad income and the average net income. Draw these three in a diagram as functions of x