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nakungth nakungth
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6 years ago
Suppose that the government subsidizes housing expenditures of low-income families by providing a dollar-for-dollar subsidy to a family's housing expenditure.  The Cunninghams qualify for this subsidy and spend a total of $500 per month on housing: they spend $250 of their own and receive a government subsidy of $250.  Recently, a new policy has been proposed that would provide each low income family with a lump sum transfer of $250 which can be used for housing or other goods.   Using a graph, demonstrate whether the Cunninghams would prefer the current program, the proposed program, or would be indifferent between the two.
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Microeconomics

Microeconomics


Edition: 8th
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Bart_argBart_arg
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nakungth Author
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#2
5 years ago
Thank you!
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