sarah' s initial endowment is 500 euros, and his utility depends on the following two things: the number of visits he makes to the dermatologist and how much money is left over to spend on junk food. When a visit to the dermatologist costs 60 euros, he sees the doctor 3 times. Suppose that a health care reform reduces the cost of visiting a dermatologist to 10 euros but imposes a lump-sum tax of 170 euros.

a) We cannot determine whether or not the reform will make sarah better off

b)The health care reform will make sarah better off

c)The health care reform will make sarah worse off

d) sarah violates the SARP

e) sarah violates the WARP