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 mothers may prefer one policy over the other , depending on their preferences. Using the above the 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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