Problem
Federal housing and food stamp subsidy programs are two of the largest in-kind transfer programs for the poor. President Barack Obama's 2011 budget allocated the Housing Choice Voucher Program $19.6 billion. Many poor people are eligible for both programs: 30% of housing assistance recipients also used food stamps, and 38% of food stamp program participants also received housing assistance (Harkness and Newman, 2003). Suppose Jill's income is $500 a month, which she spends on food and housing. The price of food and housing is each $1 per unit. Draw her budget line. If she receives $100 in food stamps and $200 in a housing subsidy (which she can spend only on housing), how do her budget line and opportunity set change?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.