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Since 1979, low-income recipients have been given food stamps without + charge. However, before 1979, people bought food stamps at a subsidized rate. For example,
Since 1979, low-income recipients have been given food stamps without + charge. However, before 1979, people bought food stamps at a subsidized rate. For example, to get $1 worth of food stamps, a household paid about 304 (the exact amount varied by household characteristics and other factors). What is the budget constraint facing an individual if that individual may buy up to $100 per month in food stamps at 30c per each $1 coupon? Compare this constraint to the original budget constraint with no assistance and the budget constraint if the individual receives $100 of food stamps for free. Assume the individual has income of $110 per month. Expenditures on other goods in dollars per month 1.) Using the multipoint curved line drawing tool, graph the budget constraint facing this food stamp recipient with subsidized food stamps. Label this line 'L1' 2.) Using the line drawing tool, graph the budget constraint with no food stamp assistance. Label this line 'L2.' 3.) Using the multipoint curved line drawing tool, graph the budget constraint 0 20 40 60 80 100 120 140 160 180 200 220 with $100 in free food stamps. Label this line 'L3.' Market value of food purchased in dollars per month Carefully follow the instructions above, and only draw the required objects. After plotting the final point of your multipoint curve, press the Esc key on your keyboard to end the line
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