Question

The Section 8 Housing Program is similar to, but slightly different from, the Food Stamp program....

The Section 8 Housing Program is similar to, but slightly different from, the Food Stamp program. Under the Section 8 program, the government provides a voucher for paying rent, but only after the housing expense exceeds a certain percentage of income.

Assume the consumer has income of $600. Furthermore, assume the Section 8 housing voucher will pay for housing expenses in excess of 1/3 of consumer income, with a maximum payment of $200. If the price of housing is $1 per unit and the price of all other goods is also $1 per unit, use the straight-line tool to draw the budget line with the Section 8 housing subsidy. (Note: this graph will require you to draw multiple straight lines.

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