Widespread malnutrition in developing countries calls for appropriate interventions, presupposing good knowledge about the nutritional impacts of policies. Little previous work has been carried out in this direction. We present a comprehensive analytical framework, which we apply for Malawi. Using household data and a demand systems approach, we estimate income and price elasticities of food, calorie, and micronutrient consumption. These estimates are used for policy simulations. Given multiple nutrient deficiencies, income-related policies are better suited than price policies to improve nutrition. While consumer subsidies for maize increase calorie and mineral consumption, they contribute to a higher prevalence of vitamin deficiencies.