Show the budget line with the food stamp program

Assignment Help Econometrics

Reference no: EM131206048

The U.S. government spends over $33 billion on its Food Stamp Program to provide millions of Americans with the means to purchase food. These stamps are redeemable for food at over 160,000 store locations throughout the nation, and they cannot be sold for cash or used to purchase nonfood items. The average food stamp benefit is about $284 per month. Suppose that, in the absence of food stamps, the average consumer must divide $600 in monthly income between food and "all other goods" such that the following budget constraint holds: $600 = $12A + $4F, where A is the quantity of "all other goods" and F is the quantity of food purchased. Using the graph below, draw the consumer's budget line in the absence of the Food Stamp Program. On the same graph, show the budget line with the Food Stamp Program.

Reference no: EM131206048

Questions Cloud

Find the power delivered to the flashtube : How much energy is stored by the capacitor? - What is the charge on the capacitor? - Find the power delivered to the flashtube.

Create a short response explaining your position : How has Super's lifespan theory informed your career development perspective and plans? Create a short response explaining your position on each of these questions.

What is the cost of regular unleaded fuel in your town : What is the cost of regular unleaded fuel in your town? What are some contributing demand and supply factors to the differences in fuel prices around the country?

Determine the energy stored by each capacitor : Determine the energy stored by each capacitor under steady-state conditions. - Repeat part (a) if the capacitors are in series.

Show the budget line with the food stamp program : Using the graph below, draw the consumer's budget line in the absence of the Food Stamp Program. On the same graph, show the budget line with the Food Stamp Program.

Calculate the value of the loan if the bank charges : ACST101 Techniques and Elements of Finance - How much will Jessica accumulate in 5 years if she is not going to make further deposits - Jessica plans to withdraw $5000 from this account in 6 years' time and the remaining balance $X in 8 years' time...

Calculate the net present value and payback for the project : Calculate the net present value and payback for each project and state which project the company should accept and why.

Obtain the waveforms of vc and ic versus time : Using schematics, obtain the waveforms of vC and iC versus time for the network of given figure using the IC option.

Demonstrating the health benefits of cocoa : What happens to the price and the quantity bought and sold in the cocoa market if countries producing cocoa experience a drought and a new study is released demonstrating the health benefits of cocoa? Illustrate your answer with a demand and suppl..

User Account

All Pages