Demand for health capital; consumer choice; market equilibrium analysis
DRAW BIG GRAPHS TO IMPROVE CLARITY
1. Suppose that John could work 365 days per year and could earn $200 per day for each day he worked. Draw his budget line with respect to his labor-leisure choice.
2. Suppose that John chooses to work 200 days per year. Draw the appropriate indifference curve, and note his equilibrium wage income and labor-leisure choices
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