It is Christmas and Lora and her parents are shopping. Lora's attention is caught by a pair of Levi's jeans, which she immediately likes. Although there are several other brands available in the shelf and Levi's is comparatively expensive, Lora insists that Levi's jeans are better in quality and design. She manages to convince her parents that her choice is the best and buys the pair. This is an example of .

With signals from no-claim bonuses and deductibles, a. the marginal cost curve for careful drivers lies to the left of the marginal cost curve for aggressive drivers b. auto insurance companies insure more aggressive drivers than careful drivers because aggressive drivers have a greater need for the insurance c. the market for car insurance has a separating equilibrium, and the market is efficient d. most drivers pay higher premiums than if the market had no signals