(a) Draw a figure showing that a government subsidy allows a low-income family to reach the same level of satisfaction (indifference curve) with a smaller cash subsidy than if  the government gives the subsidy in kind (such as the government subsidizing the price of food or the housing rent of the low-income family). (Hint: In drawing your figure,  use the substitution and the income effect of a price change as defined by Hicks). (b) Why does the government often still chooses to give an subsidy in kind?

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