Identify whether each situation is an example of adverse selection, the principal-agent problem, or neither. V 1st attempt See Hint Items (6 items) (Drag and drop into the appropriate area below) You go on a Your auto Consumers trust Even though you Your Life insurance drinking binge insurace doctors to order are a smoker, you orthodontist says companies aren't after getting a company raises only those have heard that if your children always fully new health everyone's rates procedures that you quit for a need braces. You aware of insurance policy. because of a rash are necessary. month, insurance don't get a patients' health of accidents. companies won't second opinion. history. Your rate rises be able to detect After all, why too, even though nicotine in your would the doctor you haven't had system. You quit lie? an accident. for a month, and you get a good rate on your insurance. Adverse selection Principal-agent Neither Drag and drop here Drag and drop here Drag and drop hereFor the following questions, you need to determine whether each of the four factors given creates a positive demand shock, a negative demand shock a positive supply shock, or a negative supply shock for the market in bold. For example, if you are told, "Automobile workers receive higher wages: automobiles," you would indicate that the supply of automobiles will decrease due to higher input costs, and the supply curve will shift to the left." 1st attempt Part 1 (1 point) See Hint Birth rates in the United States decline: Factors That Shift Demand to the Left Facton That Shit Demand to the Right diapers (Dotmase Demand) Oncreate Demand Price The government provides subsidies to ethanol Chandily producers: ethanol Factors That Shit Supply is The Lan Fasion That thill Supply to the High (Increase Supply) Starbucks IDecreme Supply) coffee drinkers suffer due to a small coffee harvest: Starbucks coffee Consumer ncomes decrease: Part 2 (1 point) See Hint A The price of beer increases: Solo Factors That Shift Demand to the Left Facton That Shit Demand to the Right CUPS (Dotmase Demand) Oncreate Demand Price ZHo Henry Ford develops assembly-line production: aut omobiles Charity Natural gas producers are Factors That Shit Supply is The Left Factors That thill Supply to the Right making large (Increase Supply) economic losses: natural gas The price of PlayStation increases: Xbox