Jim spends $200 visiting a dentist who recommends dental surgery costing and additional $1,300. Jim has no dental insurance and decides not to get the surgery to avoid paying out of pocket. (a) Draw a budget line and indifference curve rationalizing Jim's choice in a graph with non-dental spending C on the vertical and dental spending D on the horizontal axis. (b) Assume the government introduces a dental care spending account that entitles Jim to $1,000 worth of free dental services. With this policy in place, Jim decides to get the dental surgery. Draw the new budget constraint and optimal choice. Did the policy make Jim better off? (c) Assume that the government cancels the dental spending account and instead gives Jim $1,000 in cash. After this change, Jim still decides to get the surgery. Draw the new budget constraint and optimal choice. Does Jim prefer the cash transfer to the dental spending account