How do I go about solving this?

Now assume that Medicaid is introduced. Medicaid is a public health insurance

program for the poor. Assume that the individual described above is eligible.

Medicaid offers a fixed bundle to the eligible: they can have 3 units of health

insurance for no cost. If an individual elects to be covered by Medicaid, they cannot

purchase additional health insurance; they are limited to the 3 units provided by

Medicaid.

a. Does the individual described above choose to enroll in Medicaid? Use

graphs and thoroughly justify your answer. And does their consumption of health insurance go up or down with the introduction of Medicaid?

Budget constraint: 1000 = 100*HI + 25*G

Utility function: U=HI*G where MRS = -G/HI

HI= 5

G=20

U=100