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:buN'lUUA coursework Problem Set page 7 Question A2 (25 marks) Repeated lockdown due to Covid-19 have affected many households in their ability to buy necessities.
:buN'lUUA coursework Problem Set page 7 Question A2 (25 marks) Repeated lockdown due to Covid-19 have affected many households in their ability to buy necessities. Consider the following hypothetical example to study theoretical implications on how individuals may make their purchasing decisions. Suppose that a single mother of two kids earns 400 per week, and her housefhold consumes two goods: \"Food\" (Grand) and \"Other Good\" (Qoum). Suppose that the price of Food is 4 per unit (Other Good is measured in monetary term, so the price of one unit is 1). The government is considering offering a special support programme using food voucher which will make Food more affordable for srngle mothers. (A2a) Using an indifference curve analysis, show below an equilibrium consumption bundle (Qrm', Qoum"). (No need to pick specic numerical values for (QFood . Qoum) but indicate your equilibrium point clearly in the graph.) 4 marks QOther
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