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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,

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, PH = $100 and PG = 200.

  1. Would the individual whose indifference curve you have drawn be better off with a cash subsidy or a housing voucher? Would this be the case for any individual? Why or why not? Explain your answers in words and on the original diagram and/or on a fresh diagram if you prefer.

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