Please explain and show all steps. Please do not copy and paste from a previously posted answer as I would like for this to be explained (other answers are not sufficient). Thank you.

1. A risk averse individual faces uncertainty with two outcomes: good, bad. The individual has income $580 under good and $370 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 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. 1. A risk averse individual faces uncertainty with two outcomes: good, bad. The individual has income $580 under good and $370 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 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