Question
At current prices, housing costs 200 000 per unit and the composite good has a price of 1 per unit. Tom, who has total wealth
At current prices, housing costs 200 000 per unit and the composite good has a price of 1 per unit. Tom, who has total wealth of 400k, just decided to buy 1 unit of housing and 200 000 units of the composite good. Now the price of housing falls by half. True, false or uncertain: Tom is better off as a result of the price change. Explain.
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
