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Author Question: If income increases due to a decrease in taxes, then A) utility will increase because consumers ... (Read 57 times)

luminitza

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on: Jul 1, 2018
If income increases due to a decrease in taxes, then
 
  A) utility will increase because consumers can afford a larger bundle of goods.
  B) utility will fall because consumers will be forced to buy a smaller bundle of goods.
  C) utility will remain constant.
  D) utility will increase because consumers will be forced to buy a smaller bundle of goods.

Question 2

People derive utility in their lives from consuming goods (all other goods), g, and clean air (measured as the number of particulates removed per m3), a, as measured with the utility function U(g,a) = g0.6a0.4. The price index of consumer goods equals 20 per day. Income equals 1000. What is likely to happen to the number of asthma cases as the price of clean air (abatement cost) increases from 10 to 20?
 
  A) Asthma cases decrease because the particulates per m3 increase by 2 units.
  B) Asthma cases increase because the particulates per m3 decrease by 2 units.
  C) Asthma cases increase because the particulates per m3 increase by 2 units.
  D) There is not enough information to answer this question.
Microeconomics ¦ Perloff ¦ 8th Edition
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Expo

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Reply #1 on: Jul 1, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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luminitza

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

FergA

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Reply 3 on: Yesterday
Excellent

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