8-4 Homework: Problem Set

Homework: Problem Set

Data:

Total Families: 400

Poor: 200

Rich : 200

Income of Poor Families: $200/Week

Income of Rich Families: $400/Week

Spending of Poor Families: $100 plus one half of its each week income (200/Week)

: $100 + $100 = $200

Spending of Rich Families: $100 plus one half of its each week income (400/Week)

: $100 + $200 = $300

Taxing Rich Families: $100/Week results in each family of the community

: With $300/Week

Solution 1

Based on the assumptions that each family spends $ 100 plus one half of its total income each week, the total weekly consumption of a poor family prior to instituting the ...