Question 2 (10 Total Marks) Conditional versus Unconditional Grant The Regional Government has a budget of $10,000. It spends its money on sewage treatment (X) and other goods (Y). Px=$200 Py=$100 Suppose the Provincial Government wants to encourage the Region to invest more in sewage treatment and offers the Region a matching grant. For every $1 the Region spends on sewage treatment, the Province will give it $1. The Region is initially in equilibrium at E. Yother goods 100 95 90 85 80 75 70 65 60 55 50 45 4O 35 3O 25 20 15 05101520253035404550556065707580859095100 XSEWEEE HEEDTIEI'H