Suppose a new pill is developed that magically makes exercise have a greater health payoff .You work for a health insurance company and want to predict how people will react to this pill in their health behaviors. Which graphs from the Grossman model would you need to change to reflect this new technological advance?

This would not affect any of the graphs.

The production possibilities frontier graph.

The marginal efficiency of health capital graph.

The production possibilities frontier, and the marginal efficiency of health capital.