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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Econometric Analysis Of Cross Section And Panel Data
Authors: Jeffrey M Wooldridge, J M Wooldridge
2nd Edition
0262232588, 9780262232586
