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Suppose m = $1000, The price of food is Pf = $30 and the price of other goods is Pg = $10. (a) What is
Suppose m = $1000, The price of food is Pf = $30 and the price of "other goods" is Pg = $10. (a) What is the budget constraint? Draw the budget line on a graph and identify points on each axis. Put food on the x axis (5 points). (b) Suppose there is a quantity of 30 food stamps issued. Draw the new budget line and show points on each axis. Put food on the x axis (5 points).
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