r a person who consumes water and bread, deriving utility by xy if x is the amount of water consumed and y is the amount of bread consumed. Suppose this person's income is Rs. 10, the unit price of bread is Rs. 3 and the unit price of water facing this person is Re. 1. The price of water incorporates a per unit subsidy of Re. 1, i.e., for every unit of water consumed by this person, she pays Re. 1 to the water supplier and the government pays Re. 1 to the water supplier. Suppose this person's demand is (x0, y0). ,If the government provides this person a lump-sum income subsidy that exactly offsets  her utility loss on account of re

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