Question

The distance So e) The distance Y,S 23. In the diagram below, the budget constraint for the voucher system is a) ABD b) ABCE e) A'BCE d) A'BD e) None of the above

Answer 1

Ans :- Some concepts, Budget line equation pixit P2X2 = m (1) Let us Assume that consumer would increase the units of x, by Axi So he has to forego units of xz by DXz. 2 bixit Piax + P2X2 + pq o X 2 = m Substract (II from (2) bioci + b 2 xz - bidi-blax. - P2X2 - P20X2=m-m -piaxi - P2 AX2 = 0 => -blox = P2oXz Stol of Budget dine velresents the opportunity Cost of consuming one good in Troms of other good.

so upto Boucher Consumption of good that is quantity given by Doucher Policy There is no & Trade off 61w good for which foro Pou voucher is provided and other goods So opportunity cost is zero on and hence The slope which is The Line segment & A'B in given diagram and after voucher quantity trace- off will occur and Scope of Budget Line becomes negative and ceis Line Segment in given diagram.
if details for voucher policy is given then we can say some thinge about line segment BC but in give information it can be conclude that after voucher provided consumption there is an decrese in money income but why i couldn't tell you