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Matt currently purchases 1 pound of broccoli per month .Suppose that the government would like Matt to increase his consumption of broccoli to at least
Mattcurrently purchases 1 pound of broccoli per month.Suppose that the government would like Matt to increase his consumption of broccolito at least 2 pounds per month.If the price of one pound of broccoli is $2, and all goods are normal:
What will be the minimum unconditional cash transfer to achieve a consumption of 2 pounds of broccoli per month?
1) The cash transfer must be exactly equal to $2 per month
2) The cash transfer could be smaller than $2 per month
3) The cash transfer must be greater than $2 per month
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