Low income recipients have been given food stamps

Assignment Help Business Economics

Reference no: EM13898482

Since 1979, low income recipients have been given food stamps without charge. However before 1979, people bought food stamps at a subsidized rate. For example, to get $1 worth of food stamps a household paid about 20? (the exact amount varied by household characteristics and other factors). Show the budget constraint facing an individual if that individual is allowed to buy up to $100 per month in food stamps at 20? per each $1 coupon. Compare this constraint to the original budget constraint (original income is Y) with no assistance and the budget constraint if the individual receives $100 of food stamps for free.

Reference no: EM13898482

Questions Cloud

Marginal cost-average total cost and profit : In a Price Taker market, with a total fixed cost =$200 Also given Output per month (3) tons, Total Cost = 1550, Price per ton = 500,. How would I calculate (and what formula would I use for each), Marginal Cost (MC), Average Variable Cost (AVC), Aver..

Beginning to understand break-even analysis : Selling price to Yumminess at $10 per tin. The cost is $8 per tin, which includes $6 of direct material and $1.50 of direct labor. Annual manufacturing overhead is estimated at $100,000 for the expected sales of 200,000 tins. Operating expenses are p..

What fiscal and monetary policy had negative impact : In the U.S., what fiscal and monetary policy had a negative impact on its equilibrium of prices? How could a free market society avoid that negative impact and maintain both production and price? Please give details.

Is leisure a giffen good at high or low wage rates : If an individual’s labor supply curves slopes forward at low wages and bends backward at high wages, is leisure a Giffen good? If so, is leisure a Giffen good at high or low wage rates?

Low income recipients have been given food stamps : Since 1979, low income recipients have been given food stamps without charge. However before 1979, people bought food stamps at a subsidized rate. For example, to get $1 worth of food stamps a household paid about 20? (the exact amount varied by hous..

What were the main characteristics of economic growth : What were the main characteristics of economic growth in Latin America from the end of World War II until the debt crisis of the 1980s? What is import substitution industrialization? Explain its goals and methods. What are the main criticisms of impo..

What is the marginal revenue of the fifth unit of production : Given the level of demand below, what is the marginal revenue of the fifth unit of production? P: Q: 25 1 22 2 18 3 15 4 12 5 Answer: $0, $60, $12 or $48

What would be the long run equilibrium price : A competitive firm’s cost of production is C(Q) = Q3-20Q2+125Q. The firm’s problem is to choose the value of Q$0 that maximizes its profit. If this were a free entry industry, then what would be the long run equilibrium price?

Effect of the shift on the equilibrium price and quantity : In each of the following examples determine (1) the market in question; (2) whether a shift in demand or supply occurred the direction of the shift and what induced the shift; and (3) the effect of the shift on the equilibrium price and quantity.

User Account

All Pages