If a relatively wealthy person spends more on food than a poor person before receiving food stamps, is the wealthy person less likely than the poor person to have a tangency at a point such as f in Figure 5.7?
Figure 5.7: Food Stamps Versus Cash

Transcribed Image Text:

Budget line with cash Y + 100 Budget line with food stamps Original budget line 100 Y+ 100 Food per month All other goods per month