During calamities, such as typhoons, fires, or the ongoing pandemic, the government provides assistance to affected families either in kind or in cash. Which do you think most people will prefer to receive – in kind (food pack) or financial assistance? Illustrate and explain your answer using indifference curves and budget lines (draw your ICs and budget lines in one graph with quantity of food in the horizontal axis and other goods in the vertical axis

During calamities, such as typhoons, fires, or the ongoing pandemic, the government provides assistance to affected families either in kind or in cash. Which do you think most people will prefer to receive – in kind (food pack) or financial assistance? Illustrate and explain your answer using indifference curves and budget lines (draw your ICs and budget lines in one graph with quantity of food in the horizontal axis and other goods in the vertical axis

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter21: Demand: Consumer Choic

Section: Chapter Questions

Problem 5E

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When there is a calamity, the government provides help either in the form of food or cash. Which would most people prefer among these two? Illustrate and explain using indifference curves and budget lines. (put both indifference curves and and budget line in only one graph with the quantity of food in the x-axis and the quantity of other goods in the y-axis.
What is the difference between ordinal utility and cardinal utility? Explain why the assumption of cardinal utility is not needed in order to rank consumer choices!
You run a foundation that provides help to families during the holiday season. You distribute both clothing and food, which you buy (at discounted prices) with money from donors. Clothing costs you $1 per pound and food costs $4 per crate. 1a) With a budget of $1,000, draw your budget constraint on the graph below (labeling the intercepts) and illustrate a hypothetical utility-maximizing choice with an indifference curve, labeling the resulting choice of clothing and food as simply C* and F*. 1b) This year, you are happy to learn that the city is providing a match for money spent on food, so that you will need to spend only half as much per crate you provide. How is this likely to change the quantities of food and clothing you provide? Explain.
George has a fixed income and can afford at most 7 units of X if he spends his entire income on X. Alternatively, if he spends all his income on Y, he can afford at most 6 units of Y. Draw George's budget line and an indifference curve such that George chooses to buy 4 pieces of X. Martha has the same income and faces the same prices, yet she chooses to buy 2 pieces of X. In equilibrium, what is George's subjective value of X in terms of Y? What is Martha's? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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