Question: 12.Explain using an indifference-curve diagram why a transfer recipient would generally prefer a cash subsidy to an in-kind subsidy of equal cost to the giver.

12.Explain using an indifference-curve diagram why a transfer recipient would generally prefer a cash subsidy to an in-kind subsidy of equal cost to the giver. (The giver might be a government or a private entity.) In the diagram, indicate the consumption points of the recipient under both types of transfers and also show the resulting utility difference for the recipient. Why does government nonetheless often give subsidies in kind rather than in cash?

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