Suppose a poor family spends 10 percent of its income on cheese. The familys income is $6,000.

Question:

Suppose a poor family spends 10 percent of its income on cheese. The

family’s income is $6,000. The government gives the family $2,000 in

free cheese.

a. How will this affect the family’s total cheese consumption?

b. Is the family better off by $2,000 or by less than $2,000?

Assume the family cannot resell the cheese.

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Economics Barrons Business Review Series

ISBN: 9781438008776

6th Edition

Authors: Walter J. Wessels

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Question Posted: Feb 18, 2024 04:01 AM

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Suppose a poor family spends 10 percent of its income on cheese. The familys income is $6,000.

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a Cheese consumption will go up by 1400 b The family is better off by less than ...View the full answer

Economics Barrons Business Review Series

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