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In recent years, many low and moderate income families in the United States have faced major challenges in many areas of their lives. In fact, nearly all the economic gains over the last 35 years are concentrated in the upper fifth of the income distribution. A somewhat paradoxical result from the health capital model is that a low-income person may rationally choose to not spend time investing in health.
a. Explain why (based on the logic of the model) this may be so.
b. Use your theoretical answer to part (a) to briefly discuss the health implications of widening income inequality, noted above.
c. Support your theoretical answer in part (b) with empirical evidence on the relationship between adult poverty and obesity by providing a citation or webpage link.
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Increase in demand and increase in supply will lead to?:
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