1. Peter spends his money on food and all other goods. The price for food is $2 and the price of all other goods is $4. At the moment, he has an income of $1,200 per month. He compares two welfare programs in which he could participate: The cash program would provide him with a monthly check of $300. The inekind program would provide him with a monthly food voucher of $400 that can be spent on food only. ------- :F m | 44] --NY-U3 \".[ \"l _ _ 71 1'3 75 77 79 a1 8:! IE 37 89 I1 93 95 BT IntPar capiu cans.) Year (a) Draw a gure showing Peter's budget constraint with the cash program with food on the Xaxis and other goods 011 the yaxis. Label the yintercept, the xintercept, and the slope. [2 marks] (b) Draw a new gure showing Peter's budget constraint with the inekind program with food on the Xaxis and other goods 011 the yaXis. Label the yintercept, the Xintercept, and the slope. [2 marks] (c) Draw a new gure with both budget constraints (for the cash and the iiikind program) and draw indifference curves that would reect each of these three scenarios (draw a separate gure for each scenario): i. Peter prefers program A to program B. [1 mark] ii. Peter prefers program B to program A. [1 mark] iii. Peter is indifferent between the two programs. [1 mark]