William spends his money on two goods, education and video games. Education costs $20 per hour, and video games cost $50 per game. From his part-time job, William makes $1000 per month. In all of the following questions, draw large graphs and label your axes and intercepts very clearly, including units.

1. Write down and draw William's budget constraint, with education on the horizontal axis and video games on the vertical axis. What is the relative price of one hour of education, in terms of video games? What is the relative price of one video game, in terms of education?

2.William receives an education voucher from the government, which is a fixed lump sum subsidy giving him $200 per month to spend on education. If he wants to spend more than $200 on education, he can use his own money to purchase education at the market price. The voucher cannot be converted to cash, and if William doesn't spend the $200 on education, the money goes to waste. Write down and draw William's new budget constraint, with education on the horizontal axis and video games on the vertical axis.

3.Now, suppose we are back in the pre-voucher world. The government decides to implement a public school that offers 10 hours of free (!) public instruction per month. The program is optional - William has the choice to either attend the free public school (and only the free public school), or continue to purchase private education as he could in the past. Assume he cannot attend both schools, and assume public and private education hours are homogeneous (i.e., they are the same quality, and valued identically from William's perspective). Write down and draw William's new budget constraint, with education on the horizontal axis and video games on the vertical axis.