Microeconomics
Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 23, Problem 4RQ
To determine

Which redistribution of income is correct.

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Consider the following graph, which shows the relationship between an individual's income and the number of times he or she eats out each month. QUANTITY (Dinners out per month) 20 18 16 14 12 10 8 2 0 0 1 O 2 3 4 5 7 8 INCOME (Thousands of dollars per month) 9 10 0 Felix Hint: When answering the following, be sure to specify the appropriate units. The blue point already shown on the graph shows the data for Janet. According to the graph, Janet's income is Suppose Janet's friend Felix has an income of $8,000 per month and has 16 dinners out per month. and she has
What happens to the budget line if the government applies a specific tax of $1 per gallon of gasoline but does not tax other goods (assuming that the consumer will still buy more than 10 gallons per week)? What happens to the budget line if the tax applies only to purchases of gasoline in excess of 10 gallons per week? 1.) Use the line drawing tool to draw new budget constraint with the gasoline tax on all gallons of gasoline. Label this line 'L²₁ 2.) Use the multipoint curve drawing tool to draw the new budget constraint when the gasoline tax applies only to purchase of gasoline in excess of 10 gallons per week. Label this line 'L³¹. (Note: Be sure to draw the entire budget constraint, starting at a quantity of 0). Carefully follow the instructions above, and only draw the required objects. All other goods, Units per week 10 Gasoline, Gallons per week L¹ Q After plotting the final point of your multipoint curve, press the Esc key on your keyboard to end the line.
What happens to the budget line if the government applies a specific tax of $1 per gallon of gasoline but does not tax other goods (assuming that the consumer will still buy more than 10 gallons per week)? What happens to the budget line if the tax applies only to purchases of gasoline in excess of 10 gallons per week? 1.) Use the line drawing tool to draw a new budget constraint with the gasoline tax on all gallons of gasoline. Label this line "L2. 2.) Use the multipoint curve drawing tool to draw the new budget constraint when the gasoline tax applies only to purchase of gasoline in excess of 10 gallons per week. Label this line L. (Note: Be sure to draw the entire budget constraint, starting at a quantity of 0). Carefully follow the instructions above, and only draw the required objects. 10 Gasoline, Gallons per week After plotting the final point of your multipoint curve, press the Esc key on your keyboard to end the line. 15 stv МacВook Air 80 esc F2 F3 F4 F5 F6 F7 F8 F9 @ # $ % &…
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