Assistance12. The U.S. government spends over $74 billion on its Supplemental NutrProgram (SNAP) to provide millions of Americans with the means to purchase food.Beneficiaries use an Electronic Benefits Transfer (EBT) card to transfer their govern-ment benefits from a federal account to a retailer account. The funds on an EBT cardcannot be sold for cash or used to purchase nonfood items. The average SNAP benefitis about $284 per month. Suppose that, in the absence of SNAP, the average consumermust divide $600 in monthly income between food and "all other goods" such that thefollowing budget constraint holds: $600 = $12A + $4F, where A is the quantity of "allother goods" and F is the quantity of food purchased. Using the vertical axis for "allother goods," draw the consumer's budget line in the absence of SNAP. What is themarket rate of substitution between food and "all other goods"? On the same graph,show how SNAP alters the average consumer's budget line. Would this consumerbenefit from illegally exchanging SNAP benefits for cash? Explain. (L02, L06)

A budget line is a graphical representation of the possible combinations of two things that a…

holds. is the quantity other goods" and F is the quantity of food purchased. Using the vertical axis for "all other goods," draw the consumer's budget line in the absence of SNAP. What is the market rate of substitution between food and "all other goods"? On the same graph, show how SNAP alters the average consumer's budget line. Would this consumer benefit from illegally exchanging SNAP benefits for cash? Explain. (LO2, L06)