How does your answer change

Reference no: EM132131378

Question: Suppose there are two consumers, labeled 1 and 2, each of whom has a dollar of money income which can be spent on either private good x or public good g. Assume that the dollar cannot be divided between the two goods. That is, each consumer must either spend her whole dollar on the private good or spend it all on the public good. The utility function of each consumer i is given by Ui = xi + ß(g1 + g2 ). If ß < 1, what do you expect to be the level of public goods supplied by the two consumers? Suppose ß= 1. How does your answer change?

Reference no: EM132131378

Questions Cloud

What happened to the real gdp per person : Suppose that twenty-five years ago a country had nominal GDP of $1,800, a GDP deflator of 150, and a population of 100. Today it has nominal GDP of $2,800.

Describe a human capital management goal : Describe a human capital management goal that Shawn can recommend to change the global organizational culture of AGC

Draw an edgeworth box in detail : Suppose there are two consumers A and B. The marginal rate of substitution of A is MRS = Y /X , A A A and that of B is MRS = Y /X. Draw an Edgeworth Box.

How does this charter differ from that of the fed : The statutes of the recently established European Central Bank (ECB) state that its primary objective - How does this charter differ from that of the Fed

How does your answer change : Suppose there are two consumers, labeled 1 and 2, each of whom has a dollar of money income which can be spent on either private good x or public good g.

Provide information about americans doing business in india : Use at least 3-5 citations to provide information about Americans doing business in India

How does strategic positioning benefit a firm : How does strategic positioning benefit a firm? Discuss the importance of advertising, branding, and the effect of both on the product's demand curve

Draw the contract curve for efficient production : Suppose that there are two industries, one producing X and the other producing Y, which each use both capital K and labor L in the production process.

Define the grand utility possibility frontier : Define both the grand utility possibility frontier and a utility possibility frontier and relate them to the efficiency conditions.

User Account

All Pages