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Thank you 20. a. Sketch a budget line for a Kenyan household that spends its income on only two goods: food and education. Identify the

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20. a. Sketch a budget line for a Kenyan household that spends its income on only two goods: food and education. Identify the affordable and un- affordable combinations of the two goods. b. Sketch a second budget line to show how a rise in the price of food changes the afford- able and unaffordable combinations of food and education. Describe how the household's consumption possibilities change. 21. How does an increase in the price of food change the relative price of an hour of educa- tion? How does an increase in the price of food change real income in terms of food and in terms of education? How does a simultaneous fall in the price of education change the answers to these questions?Use the following news clip to work Problems 20 and 21. Food Prices in Kenya Draining Consumers Food prices in Kenya are among the highest in the world. An average urban family in Kenya spends al- 22. a. most half of its income on food, which heavily drains expenditure that could have otherwise been diverted b. I towards education, clothing, and investment. Source: Daily Nation, February 26, 2011 23. Do ishi or W

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