It is possible that a recipient of the supplementary Nutrition Assistance Program (SNAP) will not at all increase total monthly spending on food. Rather, a recipient might use SNAP benefits as a replacement for his own previous spending on food so that his total monthly spending on food is unchanged. Create a diagram similar to Figure 7.7. Show the circumstance where food stamps do not increase total spending for food. Label all budget lines and indifference curves. Why might a food stamp recipient make such a spending choice?

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A Expenditure on Other Goods per Month (Dollars)" Expenditue on Other Goods per Month (Dollars) B 00 Q₂ M M 0 Q₂ QF QF3 U₁ U₁ A Food per Month U₂ U₂ U₂ A Food per Month A' A'