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Scenario 2 Suppose the government implements an income support program with the intention of making sure residents are able to purchase sufficient food. The government pays a cash benefit to all individuals with incomes less than $1000 according the following formula: cash benefit (CB) = $200 0.2*(earned income(l)) Households spend all of their income on food (F) and other goods (X). The price of food and other goods are normalized to 1. A households budget constraint is F+X= CB+| Households have the following preferences: U = 0.25*ln(F) + 0.75*ln(X) Question 49 1 pts Refer to Scenario 2 Suppose instead of cash, the government benefit is in the form of food stamps, or vouchers, that must be spent on food. How much does the household spend on food now? Question 50 1 pts Refer to Scenario 2 Which program does the household with $300 earned income prefer and why? CI The food stamp (voucher) program. The household prefers to maximize expenditures on food. CI The cash benefit program. The household prefers to spend all of its income on goods other than food. CI The household is indifferent between programs. It spends the same on food and other goods in both cases