Question

With the conditional grant, how much better off (in utils) is your hometown? (4 marks) What dollar amount is your hometown receiving? S (6 marks) If your hometown were given the same amount of cash without any conditions, that is, unconditionally, would it be better off than with the conditional grant? (2 marks) If so, by how many additional utils? (4 marks)To stimulate the economy, the Federal Government is offering municipalities $2 for every $1 spent on sewage treatment facilities (Y). Your municipality's budget is $1,800. The price of Y is $ 180 and the price of X (non-technology) is $60. Illustrate the impact of the grant on your municipality. Carefully draw the new budget line labelling all points of interest. Treatment Facilities (Y) 30 28 75 82 26 22 20 18 55 16 50 14 12 10 4 2 4 6 10 12 14 16 18 20 22 24 26 28 30