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(1. Find the optimal bundle. How many units of food will the Gates purchase after the subsidy? How much do they spend on other goods?
(1. Find the optimal bundle. How many units of food will the Gates purchase after the subsidy? How much do they spend on other goods? Illustrate your answer in the diagram that you drew in part c. Indicate both the optimal bundle before the subsidy and the optimal bundle after the subsidy. We can find the Gates' optimal bundle by setting up the tangeney condition and the feasibility condition. 9 '2'? ?.C.: -= q' ???=??" ???".,r' { ., ., l ='{T'o'-'+\"q'.'=1='{"\"q?=r F.C.:??*+' yaI I I I I? .,_ _r:.' r'_ I a\" or??? '2} ..? r' =' I =' I ='{ or??? ?- '? 17*: z??? W ' '1? { 9 { W? They purchase 750 units of food and they spend $600 on other goods
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