1. Suppose the governmnet decides to go forward with a food stamp program. Jerry learns of a black market for food stamps where people are willing to trade $1 for 2 food stamp dollars. Could Jerry obtain his preferred bundle from when there where subsidies?

He has a $400 weekly income and recieves a $100 cash subsidy. Prices are $1.

U(x,y)= x^1/10 y^9/10