Solution) Suppose that Martha’s income is $40,000 per year. She can spend it on health care visits, which cost
Question: Suppose that Martha’s income is $40,000 per year. She can spend it on health care visits, which cost $80 per visit, or on groceries (proxy for all other goods), which cost $100 per bag of groceries. Draw Martha’s budget constraint. Using indifference curves show Martha’s utility-maximizing optimum if she buys 300 bags of groceries per year.
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Solution: The solution file consists of 3 pages
Deliverables: Word Document![](/images/msword.png)
Deliverables: Word Document
![](/images/msword.png)