assume the health production function is h = 365-1 /H where h is the number of healthy days a person has in each year and H is the persons health capital. Assume this person earns $100 a day and the marginal cost of health investment is pi = 25 and remains constant overtime. The annual interest rate is 5% and health capital depreciates at a rate of 15% per annum.   Suppose the person acquire a chronic disease and his health depreciation rate rises to 35% annually what is the new optimum level of health this person should demand now having the chronic disease?   suppose instead of having a chronic disease the person experiences a recession and his wage falls to $50 a day. Assume the change in the price of time inputs changes the cost of a unit of health investment by 10%. What is the value of the persons optimal health demand now?

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