ECON-101 Final: ECON 101 Georgetown PracticeFinal2Answers
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The substitution effect alone results in a decrease in. 1x from ox1 to cx1 (by revealed preference). If the income effect is of the demand for opposite sign, it must result in an increase in demand, illustrated here as an increase from. The effect of a decrease in income (the shifting in of the compensated budget line to the final budget line) is a increase in demand: Given that demand is perfectly inelastic, the entire tax will be paid by the demander, none will be paid by the supplier. With a tax of per harley, tax revenue will be 2*20 q = q d s: the mrs of individual i is. 5=gp and the price of the private good is. G efficient provision of the public good satisfies. 2: if anne selects galileo with probability p, bill gets expected payoffs of p and from galileo and caf milano, respectively.
