1. "In an attempt to aid the poor, the government of Milkchurnia introduces a policy whereby the first two pounds of butter a family buys are subsidised and any further butter purchases by the family are taxed. Consider a family which purchases butter and is made neither better off nor worse off by this policy. The total amount of tax this family pays cannot exceed the subsidy that it receives." Is this statement true, false, or ambiguous? Justify your answer.