Question: 2 . Suppose that your utility function over health care ( h ) and other goods ( c ) is given by U ( h
Suppose that your utility function over health careh and other goods c is given by Uh c and that you have a fixed income of $Assume that the indifference curves of your utility function bear the usual convex shape Each year, you choose h and c to maximize your utility subject to a budget constraint:
phh pcc Y
where, ph is the price of health care, pc is the price of other goods, and Y is your income.
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