Annie and Marty are both single parents with full-time jobs. Consequently, both value
child care services (
S
) and children’s clothing (
C
) but may have different preferences for the two
goods. The government decides it wants to make life easier for single parents and is considering
providing single parents with monthly child care vouchers or, simply, providing single parents
with a cash payment every month. Suppose Annie and Marty’s incomes are both 400, the price
per unit of child care is 10 per unit and the price per unit of clothing is 20.
(a) Draw Annie’s budget constraint assuming the government decides to offer a $100 voucher
for child care.
(b) Draw Marty’s budget constraint assuming the government decides to offer a $100 cash
payment to single parents.
(c) Draw an indifference curve representing Annie’s preferences that is consistent with Annie
strictly preferring the cash payment to the voucher.
(d) Draw an indifference curve representing Marty’s preferences that is consistent with Marty
being indifferent between the cash payment and the voucher.
Annie and Marty are both single parents with full-time jobs. Consequently, both value child care services...
Question 2: Annie and Marty are both single parents with full-time jobs. Consequently, both value child care services (S) and children’s clothing (C) but may have different preferences for the two goods. The government decides it wants to make life easier for single parents and is considering providing single parents with monthly child care vouchers or, simply, providing single parents with a cash payment every month. Suppose Annie and Marty’s incomes are both 400, the price per unit of child...
Question 2: Annie and Marty are both single parents with full-time jobs. Consequently, both value child care services (S) and children’s clothing (C) but may have different preferences for the two goods. The government decides it wants to make life easier for single parents and is considering providing single parents with monthly child care vouchers or, simply, providing single parents with a cash payment every month. Suppose Annie and Marty’s incomes are both 400, the price per unit of child...
Question 2: Annie and Marty are both single parents with full-time jobs. Consequently, both value child care services (S) and children's clothing (C) but may have different preferences for the two goods. The government decides it wants to make life easier for single parents and is considering providing single parents with monthly child care vouchers or, simply, providing single parents with a cash payment every month. Suppose Annie and Marty's incomes are both 400, the price per unit of child...
Question 2: Annie and Marty are both single parents with full-time jobs. Consequently, both value child care services (S) and children's clothing (C) but may have different preferences for the two goods. The government decides it wants to make life easier for single parents and is considering providing single parents with monthly child care vouchers or, simply, providing single parents with a cash payment every month. Suppose Annie and Marty's incomes are both 400, the price per unit of child...
Question 1: Louis the retired Canadian lives on a fixed budget and consumes only two goods: toques (T) and maple syrup (M). Suppose Louis monthly budget is 100 and the price of the two goods are (PT,PM) (4,2). (a) Make a properly labeled diagram illustrating Louis'budget constraint with T on the hori- zontal axis and M on the vertical axis. Indicate the area corresponding to the set of bundles (M, T) that Louis can afford. (b) What is the maximum...
5.2 please iston to us time petrol amount eory allow us to ow it is attected ber saving. pay a higher in terest rate. elp explain whes er choice theory can help explain al assets an individual who is sayi bills, gold, and government pays part of ou allows the consumer to buy as many units as descu the subsidized price. Subsidies can also be made in the users may A decision to save (of LU UL form of cash,...