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4. (15 points) Since 1979, low-income recipients have been given food stamps without charge. However, before 1979, people bought food stamps at a subsidized rate.

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4. (15 points) Since 1979, low-income recipients have been given food stamps without charge. However, before 1979, people bought food stamps at a subsidized rate. For example, to get $1 worth of food stamps, a household paid about $0.20 (the exact amount varied by household characteristics and other factors). Assume the individual has income of $70.00 per month. Illustrate on a well anno- tated graph the budget constraint facing an individual if that individual may buy up to $50.00 per month in food stamps at $0.20 per each $1 coupon? Compare this con- straint to the original budget constraint with no assistance and the budget constraint if the individual receives $50.00 of food stamps for free. Which version of the food stamp program would the consumer prefer? Which version of the food stamp program would result in greater purchases of food? Explain your

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