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oe and Ann have incomes of 10, 000and250,000, respectively. And, each has the following utility function, a measure of individual welfare: u = income0.5 Ex.

oe and Ann have incomes of 10, 000and250,000, respectively. And, each has the following utility function, a measure of individual welfare: u = income0.5 Ex. total utility at an income level of $100,000 is 316.23 (= 100, 000.5) How much does Joes and Anns utility change by if, due to a government redistri- bution program, $10,000 of Anns income is redistributed to Joe? Please show your work. 5pt Does this re-allocation improve or diminish social welfare under the conditions of a utilitarian welfare function? A Rawlsian welfare function? Please show your work and provide an economic rationale for your answer. 5pt Does this reallocation represent a Pareto improvement? Explain. 5pt

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