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Suppose I spend my income on private goods and health insurance. Due to a policy change, I am now eligible for Medicaid which is worth

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Suppose I spend my income on private goods and health insurance. Due to a policy change, I am now eligible for Medicaid which is worth $5,000 per year, but which I receive for free. Assume that I cannot buy additional coverage if I choose to enroll in Medicaid (i.e., Medicaid is a "take-it-or-leave-it" policy). On the budget constraints drawn below, draw indifference curves depicting the following scenarios. Hint: you may need to draw more than one indifference curve per graph. a) Medicaid availability increases the total amount of health care spending I consume Other Good Spending TOTAL Health Care Spending b) Medicaid availability decreases the total amount of health care spending I consume Other Good Spending TOTAL Health Care Spending c) Medicaid availability doesn't change the total amount of health care I consume Other Good Spending TOTAL Health Care Spending d) (I am indifferent between receiving Medicaid or buying private insurance Other Good Spending TOTAL Health Care Spending

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