Figure 5-4 shows a family's preferences for public and private healthcare.
-Refer to Figure 5-4.Suppose the government offers a fixed quantity subsidy of healthcare valued at $B0.The new budget line becomes _____.
A)MAS
B)MATN
C)MN
D)AS

Question

Figure 5-4 shows a family's preferences for public and private healthcare. 
-Refer to Figure 5-4.Suppose the government offers a fixed quantity subsidy of healthcare valued at $B0.The new budget line becomes _____.
A)MAS 
B)MATN 
C)MN 
D)AS

Quizplus · Accepted Answer

The fixed quantity subsidy of healthcare valued at $B0 shifts the budget line outward parallel to the original budget line. The new budget line becomes MATN.

Figure 5-4 Shows a Family's Preferences for Public and Private