1. 3.3 The food vouchers provided to Columbian refugees and the poorest Ecuadorian households as a part of the food program implemented in Ecuador in 2011

(see Application: Cash, Food, or Vouchers?) were serialized, printed centrally, and non-transferable.

They also had to be redeemed within 30 days of initial receipt. Suppose that a household, currently receiving food vouchers, would be better off if the government provided them with an equivalent cash transfer instead. Illustrate the situation on a dia gram. Would the household benefit from trading some of the vouchers in the black market if they could only sell each at 80% of the face value?