How does change budget constraint


Mr. H. Simpson is an individual who earns $5 per hour working at the Springfield Nuclear Power Plant. Assuming he works 40 hours per week, draw his budget constraint and indifference curve. If he qualifies for $200 per week in food stamp assistance, how does this change his budget constraint? Now assume that once he earns $400 he loses all his food stamp assistance. How does this change his budget constraint? Using additional indifference curves, how likely is he to work more than 40 hours per week once he loses his food stamp assistance?

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Microeconomics: How does change budget constraint
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