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The Government of Lilliput Wants to Ensure Food Security for All

Question 14

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The government of Lilliput wants to ensure food security for all its citizens.Explain how each of these policies will affect the consumption of food and other goods using indifference curves.
a)Providing each Lilliputian with a food voucher for $50
b)Transferring $50 in cash to each Lilliputian's bank account
c)Subsidizing the price of food with a per-unit subsidy
d)Providing $50 worth of food per head free of cost at government-run food agencies.(Assume that an individual cannot supplement this quantity with any extra food)

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