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Family size in United States has drastically decreased in the last century. During that same period per capita income increased. Given constant tastes, children must
Family size in United States has drastically decreased in the last century. During that same period per capita income increased. Given constant tastes, children must be an inferior good for American families!!! a. (10 points) Evaluate and illustrate this argument with a budget and indifference curve diagram (put children in the horizontal axis and "all other goods" in the vertical axis). b. (10 points) Can you think of an alternative explanation for the change in family size using some of the economic concepts presented in the consumption theory class? (maximum answer length 200 words) Family size in United States has drastically decreased in the last century. During that same period per capita income increased. Given constant tastes, children must be an inferior good for American families!!! a. (10 points) Evaluate and illustrate this argument with a budget and indifference curve diagram (put children in the horizontal axis and "all other goods" in the vertical axis). b. (10 points) Can you think of an alternative explanation for the change in family size using some of the economic concepts presented in the consumption theory class? (maximum answer length 200 words)
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