What happens to the maximum amount of all other goods that this ...

[Chloeellawright]

What happens to the maximum amount of all other goods that this person can buy if instead he receives the 100 in food coupons? What's the maximum amount of food he can buy under this plan?
 
  What will be an ideal response?

Question 2

Refer to Figure 5-4. Why is there a deadweight loss?
 
  A) because the marginal social cost of producing each additional unit in excess of Q2 exceeds the marginal benefit
  B) because the marginal social benefit of producing each additional unit in excess of Q2 exceeds the private cost
  C) because the marginal private cost of producing each additional unit in excess of Q2 exceeds the marginal benefit
  D) because the marginal private benefit of producing each additional unit in excess of Q2 exceeds the social cost

[ansleighelindsey]

Answer to Question 1

He still can only purchase 500 units of all other goods. The maximum amount of food is 300 units.

Answer to Question 2

A

[Chloeellawright]

YES! Correct, THANKS for helping me on my review

[blakcmamba]

Gracias!