Under the Healthy Start scheme, low-income women in the United Kingdom who are pregnant or have a

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Under the Healthy Start scheme, low-income women in the United Kingdom who are pregnant or have a child under 4 years of age can get free vouchers every week to spend on milk, fruit and vegetables, and infant formula milk. They may also get housing subsidies under Housing Benefit to help pay their rent. Suppose Lily's income is \(£ 250\) per week, which she spends on food and housing. Draw her budget line when the price of food and housing is \(£ 1\) per unit each. If she receives \(£ 5\) per week in food vouchers and the housing benefit is \(£ 45\) per week, how do her budget line and opportunity set change?

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Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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