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1 An individual has an income of $1000 per month with which they

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1. An individual has an income of $1000 per month with
which they buy the composite good with a price of $1 and
food with a price $2/unit of food.
A) draw the budget constraint for the individual with the
composite good on the y-axis and food on the x-axis
B) now assume that the government gives the individual
food stamps worth $100. This is money that can only be
spent on food. Draw the new budget constraing for the
individual on your graph from part a
C) assume instead that the government had given the
individual $100 in cash. Draw the new budget constraint
for the individual on your graph from part a.
1. An individual has an income of $1000 per month with
which they buy the composite good with a price of $1 and
food with a price $2/unit of food.
A) draw the budget constraint for the individual with the
composite good on the y-axis and food on the x-axis
B) now assume that the government gives the individual
food stamps worth $100. This is money that can only be
spent on food. Draw the new budget constraing for the
individual on your graph from part a
C) assume instead that the government had given the
individual $100 in cash. Draw the new budget constraint
for the individual on your graph from part a.
A) draw the budget constraint for the individual with the
composite good on the y-axis and food on the x-axis
A) draw the budget constraint for the individual with the

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1. An individual has an income of $1000 per month with which they buy the composite good with a price of $1 and food with a price $2/unit of food. A) draw the budget constraint for the individual with the composite good on the y-axis and food on the x-axis B) now assume that the government gives the individual food stamps worth $100. This is money that can only be spent on food. Draw the new budget constraing for the individual on your graph from part a C) assume instead that the government had given the individual $100 in cash. Draw the new budget constraint for the individual on your graph f ...
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