Can you explain the shape/position of demand curve D2?a. There is no particular reason why demand curve D2 is twice as steep as demand curve D1. In general, demand curves for the insured can be more or less steep than demand curves for the uninsured in the medical services market.b. Demand curve D2 is twice as steep as demand curve D1 because of adverse selection issues. Those who purchase health insurance are more conscientious about maintainting their health, so their demand for medical care is less elastic than that of the uninsured.c. Demand curve D2 is twice as steep as demand curve D1 because the typical patient is less price-sensitive when covered by medical insurance. Insurance covers 50% of the patient's medical costs, so the price of medical care will have to increase by twice as much to induce a similar reduction in service demanded as an uninsured patient.d. Demand curve D2 is twice as steep as demand curve D1 because of adverse selection issues. Those who purchase health insurance are more likely to get sick, so their demand for medical care is less elastic than that of the uninsured.Suppose the marginal cost of an appointment is $100 and the market is perfectly competitive. Answer all of the following questions twice: once considering a market without medical insurance and once considering a market with medical insurance.