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1 Grossman Model and SES Implications As a general hint for questions related to this topic, there will be many acceptable answers. The important thing that I am looking for is

you are able to justify your answer thoroughly using the mechanics of the Grossman model. To receive full credit, you will need to refer to the very specific details of the Grossman model, and the consumer is affected by the situations described by the questions! a How can a mandate that provides free healthcare change the choices of a consumer in the Grossman model? (HINT: Which part of the Grossman model does costless healthcare affect? How will this change to the consumer's problem affect the outcome of the model? b The elderly and disabled population typically cannot put much time into working due to their low levels of health. Using the Grossman model, ex- plain why consumers who have a lower level of health spend less time work- ing, and how this results in the consumers having worse health outcomes. (HINT: How are bad health and time spent sick related?)

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