1.4 Consider a population of 1,000 families: 200 had Medicaid insurance, 700 had some other type of insurance, and 100 were uninsured. Suppose now that Medicaid broadens eligibility rules that would allow an additional 100 families to get coverage. After one year, 250 families now have Medicaid, 675 now have some other type of insurance, and 75 are uninsured.

a Calculate the average take- up and crowd- out both in numbers of families and in rates.

b Calculate the marginal take- up rates occurring due to the eligibility change.

c Has insurance coverage for the population increased? Why or why not?

d Has insurance coverage for all families increased? Why or why not?