Beth earns $70,000 per year as a junior consultant. Carl earns $30,000 per year as a...
Beth earns $70,000 per year as a junior consultant. Carl earns $30,000 per year as a groundskeeper at a golf course. Suppose Beth's marginal utility of income (MUA) is identical to Carl's (MUB). The following graph shows Beth's and Carts marginal utility of income (MUAUSuppose that the government decides to take $20,000 from Beth and give it to Carl. Use the red quadrilateral (cross symbols) to shade the area representing Beth's utility loss from this redistribution of income. Use the green quadrilateral (triangle symbols) to shade the area representing Carl's utility gain from the redistribution. MARGINAL UTILITY Beth's Loss MUA MUB Carl's Gain 0 204 6 B100 INCOME [Thousands of dollars) emABJ