Figure 5-3 Shows a Family's Preferences for Housing and Other

Multiple Choice

Figure 5-3 shows a family's preferences for housing and other goods.Refer to Figure 5-3.Suppose the government offered public housing that provided exactly B0 units of housing services to a low-income family.The public housing unit:

A) is provided by the government at a cost of $TB.
B) allows the family to reach a higher indifference curve but causes the family to consume more housing than an equal-sized cash transfer.
C) increases the level of housing consumption by the same amount as an equal-sized cash transfer.
D) causes the family to consume less housing than before the fixed-quantity subsidy.