mt2011spring

Draw a graph showing the original budget line from

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Unformatted text preview: 6. (30 points) Consider a consumer who purchases two goods, food and education. The consumer’s income is $2000, the price of each unit of food is $2, and the price of each unit of education is $200. a. Draw the consumer’s budget line for education (x- axis) and food (y- axis). b. Next, consider a government program that provides a voucher for 10 units of education to each consumer. Consumers can...
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