Question : Suppose that doctors' visits cost $20, and the typical consumer : 5172
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 localgovernment 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.