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Illustrate the budget constraint for a household with a high deductible health care insurance plan. Use a budget constraint diagram with health care on the
Illustrate the budget constraint for a household with a high deductible health care insurance plan. Use a budget constraint diagram with health care on the vertical axis and other goods on the horizontal axis and assume the household has $50,000 of income. Let the price of health care be $2 and the price of other goods be $1. (After the deductible is paid, insurance pays 100% of health care costs.)
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