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Elinor currently spends $100 per month on health care. She learns she is eligible for a government program that gives her $50 per month which
Elinor currently spends $100 per month on health care. She learns she is eligible for a government program that gives her $50 per month which is eligible to be spent only on health care. True or False? If Elinor's preferences satisfy our 5 axioms of consumer preference theory, it is certain that she will now spend strictly less than $100 per month out-of-pocket (i.e., spending excluding the government credit) on health care
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