4.8 Educational vouchers are increasingly used in various parts of the United States. Suppose that the government offers poor people $5,000 education vouchers that can be used only to pay for education.

Doreen would be better off with $5,000 in cash than with the educational voucher. In a graph, determine the cash value, V, Doreen places on the education voucher (that is, the amount of cash that would leave her as well off as with the voucher).

Show how much education and “all other goods”

she would consume with the educational voucher versus the cash payment of V.

5. Deriving labor Supply Curves