00:01
All right, for this question, we'll be looking at the obama care news clip that's on page 427.
00:10
It basically tells us that about 7 million people signed up for the affordable care act.
00:17
And the first part of the question basically tells us, how did the white house target the efficient quantity of families in obamacare? so in order to determine that goal, they would have to look at the marginal social costs and the marginal social benefit intersection to give them the efficient quantity of families to enroll, which would be qe in this case.
00:45
And then the second part of the question tells us to just draw a graph.
00:49
To illustrate the obama care subsidy effect on the number of families covered.
00:56
So we can see that we'll start off at demand one.
01:01
We have our marginal social cost and our marginal social benefit curve.
01:07
And we can see that without the subsidy, we would be at a q1 of quantity of families insured.
01:16
But we want to get to qe...