Reference no: EM13208949
Suppose that doctors' visits cost $20, and the typical consumer has an income of $100. Consumers spend all of their incomes on doctors' visits and a "composite good" that costs $1 per unit.
a. Draw a graph that illustrates the consumer's budget constraint, putting doctor's visits on the horizontal axis.
Make sure you indicate the horizontal and vertical intercepts. Now, suppose the local government is considering two health plans.
Under plan A, the government will give out vouchers worth 2 free visits to the doctor. Under plan B, the government will give out four 50% coupons to be used at the doctor's office.
b. Draw the new budget constraint the consumer faces under plan A.
c. Draw the new budget constraint the consumer faces under plan B.
d. For whom is the choice of plan A or plan B not likely to matter - those who are quite well, or those who are quite sick? (Hint: Superimpose
some indifference curves on your budget constraints.)
e. Which plan would someone who is generally well be likely to choose, if offered a choice?
|
Which of the scenarios would likely occur
: Tobacco production is one of the more heavily subsidized industries in the United States. Suppose that as a result of intense lobbying from health-related concerns, Congress repeals the tobacco firms subsidies. Which of the scenarios would likely ..
|
|
Which of the independent variables are statistical
: Where Qt represents the quantity of widgets sold per period t, Pt represents the price of widgets during period t, and Mt represents average household income of customers during period t. You are also given the following information about the regre..
|
|
How does a generic drug differ from its brand
: How does a generic drug differ from its brand name, previously patented equivalent Explain why the price of a brand name drug typically declines when an equivalent generic drug becomes available Explain how that drop in price affects allocative ..
|
|
Explain what temperature does the vapor pressure
: A known vapor pressure value for ethanol is 221.3 mmhg. what temperature does this vapor pressure compressed to when compared to ethanol's boiling point.
|
|
Explain the new budget constraint the consumer faces
: Make sure you indicate the horizontal and vertical intercepts. Now, suppose the local government is considering two health plans. Under plan A, the government will give out vouchers worth 2 free visits to the doctor.
|
|
Explain different type of electron repulsions
: There are three possible arrangements of atoms and nonbonding pairs of electrons for the AB3N2 geometry. assuming that the effects of the relative strengths of different type of electron repulsions given in the background information
|
|
Explain what is the value of the equilibrium constant
: What is the value of the equilibrium constant at 500 K for a chemical equilibrium that as a delta H value of 250 kj/mol and a delts S value of 48 J/mol K?
|
|
Define the electrical conductibities of sodium chloride
: Compare the electrical conductibities of Sodium Chloride (NaCl), ammonium nitrate (NH4NO3), calcium sulfate (CaSO4), and distilled water. Account for any differences noted in the electrical conductivities of these compounds.
|
|
Define change the vaule of the equilibrium constant
: Which of the listed perturbations would change the vaule of the equilibrium constant for the following reaction?
|