Adverse selection 25 + Q ; The demand of high-quality good The supply of high quality good is MCH PH = 95 The supply of low quality good is Q; The demand of low quality good is PL = 55 a. What are the prices and quantity with perfect information. b. What are the prices and quantity without information.

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Moral Hazard

The moral is a person's behavior towards himself /herself, society, organization, and others. Hazard is something that is happening and is not good. A person may be morally good or bad. It depends on his attitude, ethics, integrity, and values. A person may have the highest reverence for money to that for the truth. In this case, the person may lie and it is said that the person is morally bad.