Richard and Mary Stout have fallen on hard times, but remain rational consumers. They are making do

Question:

Richard and Mary Stout have fallen on hard times, but remain rational consumers. They are making do on $80 a week, spending $40 on food and $40 on all other goods. Food costs $1 per unit. On the below, use black ink to draw a budget line. Label their consumption bundle with the letter A.
(a) The Stouts suddenly become eligible for food stamps. This means that they can go to the agency and buy coupons that can be exchanged for $2 worth of food. Each costs the Stouts $1. However, the maximum number of coupons they can buy per week is 10. On the graph, draw their new budget line with red ink.
(b) If the Stouts have homothetic preferences, how much more food will they buy once they enter the food stamp program?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...