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Federal housing choice vouchers ($19 billion in 2015) and food stamps ($74 billion Q in 2014) are two of the largest in-kind transfer programs for

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Federal housing choice vouchers ($19 billion in 2015) and food stamps ($74 billion Q in 2014) are two of the largest in-kind transfer programs for the poor. Many poor 800 people are eligible for both programs: 30% of housing assistance recipients also 0' used food stamps, and 38% of food stamp participants also received housing 700 assistance (Harkness and Newman, 2003). Suppose Jill's income is $500 a month, which she spends on food and housing. The price of food and of housing 600 is each $1 per unit. Draw her budget line. If she receives $200 in food stamps and $150 in a housing subsidy (which she can only spend on housing), how do her budget line and opportunity set change? UI O O 1.) Use the line drawing tool to draw Jill's budget line without food stamps and federal housing support. Label this line 'L1'. Housing per month to J; O O O O 2.) Using the multipoint curved line drawing tool to draw Jill's budget line with 200 $200 in food stamps and a $150 housing subsidy. Label this line 'LZ'. Carefully follow the instructions above, and only draw the required objects. 100 0 0 100 200 300 400 500 600 700 800 Food per month After plotting the nal point of your multipoint curve, press the Esc key on your keyboard to end the line

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