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9. A government gives each welfare recipient 5 pills of drug Xper month at $1 per pill. The market price is $5 per pill. Assume
9. A government gives each welfare recipient 5 pills of drug Xper month at $1 per pill. The market price is $5 per pill. Assume that income is M and price of other good Yis $1. Suppose that utility is maximized at the kinked point. (a) How many units of X and Y will be consumed? (b) How much cash subsidy would be required to make the individual approximately indifferent between the two types of subsidy
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