Consider the household theory of fertility. If the income of the household is $250, and the price of a child=$25, while the price of goods=$5: Children Goods 0 X Y (a) X =

(b) Y =

If the equilibrium number of children and goods is always determined by dividing the income equally between them.

(c) The initial equilibrium number of children = (d) The initial equilibrium number of goods = (e) Start from the initial equilibrium in the following graph. If the cost of children declines to $12.5 only, draw the new household ís budget line and the new householdís equilibrium?

Start from the initial equilibrium again. If the income of the household doubles because men got better paying jobs, draw the new household ís budget line and the new household ís equilibrium?

Start from the initial equilibrium again. If the income of the household doubles because women are working and contributing to the income of the household, which increases the opportunity cost and the price of children to $50, and the price of goods=$5. Draw the new householdís budget line and the new householdís equilibrium?

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A X 25025 10 The number of children is obtained by dividing the household income by the price of a c... View the full answer