Please show separate graphs for each part to receive appropriate credit for each part. Feel free to use Powerpoint, Excel, or any software that can do the job, OR neatly draw by hand. If drawing by hand it may be helpful to use graph paper and you are REQUIRED to use a ruler (the graphs get complex quickly and require precision). Please scan or if necessary, take a picture of graphs to include as a part of the assignment. If not embedded in the assignment, clearly note the filename of the graph and the specific question in the assignment. PART A Optimizing Demand You can solve graphically or using equations. Marta has a monthly income of $600. Marta can only buy two goods: Health Care (X1) and Other goods (X2). Marta’s Utility Function = X1 * 3X2 How much should Marta spend on health care? How much should Marta spend on other goods? Show Marta’s budget constraint on a graph Show 3 utility functions on the same graph: $400, $600 and $800 What is Marta’s Utility at each of these utility functions? How much does Marta spend on health care? How much does she spend on other goods at her income of $600? PART B SHIFTING DEMAND Much of this class will require you to understand economic concepts and health economic concepts and be able to apply them to health care markets. What is the effect happening and why? Has the effect been measured before? If so, how big is it? Find a current news story (published 2017 or later) in the health field where there is a shift in the demand curve. Download and print the story. Include it in your assignment Describe the stable equilibrium prior to the change? If possible, what was the price range of the good or service. Describe what happened to change the equilibrium. What is the new price? This is not a supply shift. Describe a hypothetical supply shift that would put the price in the same range.

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OPTIMISING DEMAND WITH MONTHLY INCOME OF 600 IS SHOWN AS FOLLOWS UTILITY FUCT... View the full answer