Smith is given a voucher that can be spent only on textbooks. Smith has a budget constraint with textbooks measured along the horizontal axis and everything else on the vertical axis. Suppose everything else is comprised only of normal goods. Then
A. Smith will most likely end up spending some more money on everything else after receiving the voucher.
B. the voucher does not have any impact on Smith's consumption.
C. the voucher causes Smith to increase his spending on textbooks by more than the amount of the voucher.
D. Smith will not buy any textbooks because he can use the voucher for all other goods.
Answer: A
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Fill in the blank(s) with the appropriate word(s).
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