Linear budget constraint-typical convex indifference curves

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lisa has a linear budget constraint and typical convex indifference curves associated with food and "all other goods."

a. suppose that lisa is given $50 worth of food stamps, which can only be used for food, Draw lisa's budget constraints, with an without the food coupon.

b. how would a cash gift of fifty alter her budget constraint? Draw it

c. show the situation where lisa would opt for the coupon.

d. show the situation where lisa would opt for cash.

Reference no: EM13887849

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