Question: pls be with all the steps and in a clean write 2. (25 pts) The boy who goes to university has $180 income with which

 pls be with all the steps and in a clean write

pls be with all the steps and in a clean write

2. (25 pts) The boy who goes to university has $180 income with which he can buy textbook and other stationery goods. The market price for book is $6 and the price of all other goods is $2 per unit. a) Draw the budget line (Show all your computation on the graph). b) For the initial condition, the boy buys 60 units of other stationery goods and 10 books. Comment on the situation in which government program providing free 30 books (Draw the budget line again and compare the utility after government gives free 30 books) c) Under another in which government would provide $180 instead of providing book. Show that the boy would prefer cash to in kind transfer

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!