Mary is a consumer of medical care. She has income I and faces prices p_m and p_x for medical care and all other goods. Given I, p_x , p_m, and Mary's taste towards medical care and all other goods, she consumed quantity m₁ of medical care and x₁ of all other goods when she was healthy. Today she is sick and her income and prices p_m and p_x have not changed. She consumes a higher quantity of medical care, m₂ .

(a). Use a well labeled graph and explain how Mary's consumer choice differs when she is healthy versus sick. Incorporate all variables I, p_x, p_m, m₁ and m₂ in your graph.

(b). Use two well labeled, clean graphs to derive the demand for medical care for a healthy and a sick Mary. (Hint: Consider two different prices for medical care, p_m and p_m'. You only have enough information for a sketch and not an exact graph, but make sure that you are consistent between graphs.