A country recently passed a food stamp legislation


A country recently passed a food stamp legislation. Qualified households are given food stamps, which can be used to purchase foods, but they cannot legally re-sell the food stamps. Suppose a household receives a grant of $600 of food stamps per month. How will this household’s budget line be affected?

(Hint: Consider two goods: food and other goods.)

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Microeconomics: A country recently passed a food stamp legislation
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