Food Stamps Research Paper

Food stamps is an amount of money that American government gives to low income people and help them get food. American government are providing less food stamps to low income people, which put low income people into a situation: they don’t have enough money to purchase food. What will happen if low income people can’t afford to buy more food? Because the government only gives the food stamps to low income people, only low income people will be influenced by the change of food stamps. The decrease in food stamps let the income of low income people decreases, and make them buy less food. As the graph 1 shown below, using ‘food’ on x axis and ‘other goods’ on y axis, the decrease in income causes the budget constraint move to left and opportunity set become smaller; the amount of food that low income people can afford shift down from point A to point A’, which shows that they buy less food because they get less food stamps. Purchasing less food means that low income people’s demand for food
Again, as the graph 1 shown below, when the income decreases, the amount of other good that low income people can afford shift down from point B to point B’. For the New York State, the demand for other goods has the same logic as the demand for food; when adding all the people’s demand for other goods together the total demand for other goods also decreases. Finally, both of the low income people’s demand for food and other goods decrease because of losing access to food stamps. The other people who are not low income people in New York State keep the same demand for good and other goods, however, the total demand for food and other goods in the whole New York Sate still decreases because the total demand. or market demand, is the demand of each individual in the market added