=+6.13 Policy Application: Food Stamps versus Food Subsidies: In exercise 2.13, you considered the food stamp programs in the United States. Under this program, poor households receive a certain quantity of “food stamps,” stamps that contain a dollar value that is accepted like cash for food purchases at grocery stores.

A. Consider a household with monthly income of $1,500 and suppose that this household qualifies for food stamps in the amount of $500.