Re: ISI PEB (Economics), 2014 ANSWERS 1 TO 5..
Posted by mittar.chardikala@gmail.com on May 09, 2015; 10:36am
URL: http://discussion-forum.276.s1.nabble.com/ISI-PEB-Economics-2014-ANSWERS-1-TO-5-tp7595987p7596731.html
Hey Dhruv,
In ques 6, When the govt is providing 1 to 1 subsidy, it means the slope of the budget line will halve and in the second case it will be shifted outward by 250. N if we draw the we will notice that all the consumption bundle when 1 to 1 subsidy is provided lied under the new budget line. which means the second policy is better.