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In: Economics

Suppose initially a consumer is in equilibrium, consuming a certain amount of two goods: good one...

  1. Suppose initially a consumer is in equilibrium, consuming a certain amount of two goods: good one is relatively time-intensive and the other relatively goods-intensive. Consider each change below separately. What does the model predict about the consumption of each good?  Use the model to explain.
    1. An increase in income taxes.  
    2. Marriage.  Assume that prior to the marriage the two individuals lived separately.
    3. Children

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Rahul Sunny answered 2 years ago
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