Economics Asked by SHIVAM GUPTA on April 26, 2021
In this the budget line has shifted inwards due to increase in the price of goods. And then we provide social security such that the past optimal bundle becomes affordable but is not optimal. So why don’t we provide social security in a way that the budget line becomes same as the past one ( or to say provide social security in a way that price will virtually become same as past price) , so the past optimal bundle is again optimal?
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