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.

1. Suppose that the Government decides to assist this individual to increase their purchase of housing. To do so, it pays the individual an income subsidy of $200. On your diagram, show the effect of this subsidy on the individual's budget line.