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Consider Figure 5-6

Question 41

Multiple Choice

Consider Figure 5-6.The family shown faces the budget line A1BFZ.Health insurance is measured in $100 units and other goods in $1 units.A health insurance plan is introduced which would provide this family $15,000 worth of insurance for $4,000.The new budget constraint the family will face is:
Consider Figure 5-6.The family shown faces the budget line A<sub>1</sub>BFZ.Health insurance is measured in $100 units and other goods in $1 units.A health insurance plan is introduced which would provide this family $15,000 worth of insurance for $4,000.The new budget constraint the family will face is: A) AA'Z' B) AA<sub>1</sub>BA'Z' C) A<sub>1</sub>BA'Z' D) A<sub>1</sub>A<sub>2</sub>BA'Z'


A) AA'Z'
B) AA1BA'Z'
C) A1BA'Z'
D) A1A2BA'Z'

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