Consider a consumers annual budget constraint for two goods: $ spent on everything else and housing. When answering the following questions, please be sure to label your graph accordingly. Draw the budget constraint for this consumer if income (y) = $10,000 and the price per unit of housing (ph) is $2. 5pt Note: Please graph tools along the x-axis. How would this consumers budget constraint change in she received an additional $12,000 in income? 5pt Returning to the original conditions (i.e., before the cash grant), how would this consumers budget line change if she received a $12,000 non-refundable and nontransferable housing voucher from the government? How does this budget line compare to the case when she receives the $12,000 cash grant? 5pt Note: The $12,000 voucher can only be spent on housing.

1. Consider a consumers annual budget constraint for two goods: $ spent on everything else and
housing. When answering the following questions, please be sure to label your graph
accordingly.
Draw the budget constraint for this consumer if income (y) = $10,000 and the price per unit of
housing (ph) is $2. 5pt
Note: Please graph tools along the x-axis.
How would this consumers budget constraint change in she received an additional $12,000 in
income? 5pt
Returning to the original conditions (i.e., before the cash grant), how would this consumers
budget line change if she received a $12,000 non-refundable and nontransferable housing
voucher from the government? How does this budget line compare to the case when she receives
the $12,000 cash grant? 5pt Note: The $12,000 voucher can only be spent on housing