Consider the country Unsanitaria. The country had poor sanitation systems so the people fell sick often, missed work and lost income. Low income was also the reason why they could not afford sanitation. The effect of health (H) on income (Y) is given by Y-2.5H The effect of income (Y) on health (H) is given by H = 0.2Y+2 Subsequently, the government of Unsanitaria improved the sanitation system in the country so the health indicators became better even for low income people. The effect of income (Y) on health (H) after sanitation improvements became: H = 0.2Y+12 What is the income in this country after sanitation improvements? 10 ○ 30 ○ 60 O 24

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter7: The Market For Health Insurance
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Consider the country Unsanitaria. The country had poor sanitation systems so the people fell sick often, missed work and lost income. Low income was also the reason why they could not afford sanitation.
The effect of health (H) on income (Y) is given by
Y-2.5H
The effect of income (Y) on health (H) is given by
H = 0.2Y+2
Subsequently, the government of Unsanitaria improved the sanitation system in the country so the health indicators became better even for low income people.
The effect of income (Y) on health (H) after sanitation improvements became:
H = 0.2Y+12
What is the income in this country after sanitation improvements?
10
○ 30
○ 60
O 24
Transcribed Image Text:Consider the country Unsanitaria. The country had poor sanitation systems so the people fell sick often, missed work and lost income. Low income was also the reason why they could not afford sanitation. The effect of health (H) on income (Y) is given by Y-2.5H The effect of income (Y) on health (H) is given by H = 0.2Y+2 Subsequently, the government of Unsanitaria improved the sanitation system in the country so the health indicators became better even for low income people. The effect of income (Y) on health (H) after sanitation improvements became: H = 0.2Y+12 What is the income in this country after sanitation improvements? 10 ○ 30 ○ 60 O 24
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