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During the ongoing pandemic, assume the government has two policies - providing cash grants (cash handouts) of Rs. 1000 and providing food coupons worth Rs.
During the ongoing pandemic, assume the government has two policies - providing cash grants (cash handouts) of Rs. 1000 and providing food coupons worth Rs. 1000.
Draw a new budget constraint faced by the citizens in each of the situations separately. Compare it with the hypothetical initial budget line
Draw a set of indifference curves, one corresponding to a Citizen A who is indifferent between the two policies and a Citizen B who prefers cash transfers over food coupons.
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