미시경제 문제 풀어주세요(내공 100)
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1. Consider a consumer who has an income of $100. She buys 1 amount of good 1 and 2 amount of 2 at price (after tax) 1 = 10 and 2 = 10, respectively.
A. Suppose that the government gives the consumer either $10 (money subsidy) or $20 worth of good 1 (in-kind subsidy). Illustrate the change in the consumer’s budget line under each subsidy using graphs and explain them. Can the consumer prefer money subsidy to in-kind subsidy? If so, under what circumstances? Explain your answer using a graph.
B. Suppose that the government lowers the sales tax on good 1. Could it be optimal for the consumer to increase her consumption of good 2? If so, describe the conditions under which it happens and explain it using a graph.
A. Suppose that the government gives the consumer either $10 (money subsidy) or $20 worth of good 1 (in-kind subsidy). Illustrate the change in the consumer’s budget line under each subsidy using graphs and explain them. Can the consumer prefer money subsidy to in-kind subsidy? If so, under what circumstances? Explain your answer using a graph.
B. Suppose that the government lowers the sales tax on good 1. Could it be optimal for the consumer to increase her consumption of good 2? If so, describe the conditions under which it happens and explain it using a graph.