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ASAP PLEASE I WILL UPVOTTE FOR SURE l. (20 points) Use the Grossman model to answer the following questions. a) Sara is an 13yearold high

ASAP PLEASE I WILL UPVOTTE FOR SURE

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l. (20 points) Use the Grossman model to answer the following questions. a) Sara is an 13yearold high school graduate and earning a wage of $10 per hour. Depiet her optimal health stock with the marginal efficiency of invest (MEI) curve. b) Suppose that she invests in a college edueation, expecting to get a better and hi gherwage job. Show how her optimal stock of health capital changes by the age of 30 due to the increased wage. Then, show how her education would affect her optimal health stock if education also makes her a more efcient producer of health. e} Suppose that after age 30 her wage stays the same. As she ages, show what happens to her optimal stock of health capital, assuming that the depreciation rate of health increases with age

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