Private goods to get a given increment in public goods

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Reference no: EM131020127

The text states that the poor are less willing than the rich to give up a dollar of private goods to get a given increment in public goods. This implies that A. The price elasticity of demand for public goods falls with income. B. Private goods are generally inferior goods and public goods are normal goods. C. The income elasticity of demand for public goods is larger than for private goods. D. The marginal rate of substitution is approximately independent of income.

Reference no: EM131020127

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