1. A "poor" individual faces a choice between expenditure on rental of housing (H) and all other goods (G). Theindividual's total budget is given as $1000, P_H = $100 and P_G = 200.

the Government gives the individual a voucher for $100 and the voucher can only be spent on housing. What would the budget line look like in this case? Draw this budget line on your diagram