The patient is looking at two goods doctor office visits on the horizontal axis and other medical g Show more The patient is looking at two goods doctor office visits on the horizontal axis and other medical goods on the vertical axis.

The patient is looking at two goods doctor office visits on the horizontal axis and other medical g Show more The patient is looking at two goods doctor office visits on the horizontal axis and other medical goods on the vertical axis.

Assume 5 different prices (Pa < Px < Pf < Pb < Pz) of office visits (perhaps based on the patients 5 different insurance policies). Assume also that the price of other medical goods is unchanged. A) Draw the 5 different budget lines on a single graph B)Arbitrarily draw 5 indifference curves tangent to each budget line. C)Trace the 5 equilibrium office visits from the equilibrium points down to the horizontal axis. D)Below this graph draw another graph where you will trace the demand curve based on the intersection points of the imaginary lines between the given prices (on the vertical axis) and the equilibrium quantity demanded (on the horizontal axis) derived from the graph above it. Show less

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