QUESTION $6$

Moral Hazard and Adverse Selection, Part b$.$ As in Moral Hazard and Adverse Selection, Part a$,$ a study observes that individuals in health insurance plans with more generous coverage $($e$.$g$.,$ lower coinsurance rates, lower copayments$)$ use more medical care than individuals in health insurance plans with less generous coverage $($e$.$g$.,$ higher coinsurance rates, higher copayments$)$ on average. You may assume that all individuals are equally risk averse and all health insurance plans are actuarially fair. Explain your answer to Part a $($about moral hazard$)$ in $1-3$ full sentences below.