Question
Suppose that a single mother of two kids earns 400 per week, and her housefhold consumes two goods: Food ( Qfood) and Other Good (Qother).
Suppose that a single mother of two kids earns 400 per week, and her housefhold consumes two goods: Food ( Qfood) and Other Good (Qother). Suppose that the price of Food is 4 per unit ( Other Good is measured in monetary term, so the price of one unit is 1). The government is considering offering a special support programme using food voucher which will make Food more affordable for single mothers.(A2e) Single mother's may prefer one policy over the other, depending on their preferences. Using the above graph space for 2D, show the case of a mother who would prefer the cash subsidy programme. Explain your graph briefly below
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