Question

​​​​​​Based off of Gary Beckers model of utility maximization:

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

Answer 1

Becker goods consumption with time use in the production of utility as distinct goods that separately provide utility in contact Becker emphasizes that there are many different types of time use and many type of consumption of goods which combines to yield commidicomm of goods is relatively time intensive and good intensive observation that various types of time and consumption combine into single objective function with single overall. Budget created the foundation modeling framework for vietuvi level analysis of consumption and time use is new home economic .

The utility of marriage of two individuals lived the person share the same household the maximum out put of person must be at least greater as their combine income . Gain are greater given the strength of their complementary gain can also come from changing in market conditions the relationship between cost and out put . UncreaInc by the same amount