2. Atown with a $1 million budget can spend it on either a public service or private goods. Suppose each unit of the public service costs $100,000. a. Draw the budget constraint b. If the town chose to spend $500,000 on public services draw an indifference curve reflecting this choice C. If this town received an intergovernmental matching grant of 1:1 for public services, how would that change the budget constraint and the position of the indifference curve? How would that change the mix of public services and private goods consumed by the town? Please draw the graph. d. If instead, the town received a block grant of $500,000 that had to be spent on public services how would that change the budget constraint and the position of the indifference curve? How would that change the mix of public services and private goods consumed by the town? Please draw the graph.