(a) In the graph below ,

(a) In the graph below ,

(a) In the graph below , there are 2 families, A and B . Each has an ideal consumption path that has constant consumption c* in each period. If there isin this economy, why might these families want some sort of insurance? Explain(b) According to the graph in), which family will have a greater demand for insurance? Explain(c) Now consider the case when Family A has a daughter. Family A is considering marying their daughter off to Family 1 or Family 2. Based onwhich family is a more attractive marriage option for Family A? Explain?

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