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call 1 of 1 X 0 MILY Why does redistribution cause efficiency losses? Why might society choose to redistribute resources from one group to another when doing so reduces the overall size of the economic pie? . 2. Assume that the price of a bus trip is $2.00, and the price of a ride share (e.g., using a company like Uber or Lyft) is $5.50. What is the relative price of a trip using a ride-share company, in terms of bus trips? What are the effects when the price of a bus trip rises to $2.75? How do we understand these effects? What are the effects when the price of a bus tripses to $2.4 and price of a ride share rises to $6.67 How do we understand these effects? . . 3. True or false (Tor F. Why?) According to utilitarian welfare function, if we increase the poorest individual's utility by 1 and hurt the wealthiest individual's utility by 1, the social welfare is not affected. IT or F. Why?) According to utilitanan welfare function, if we increase the poorest individual's income by 1 and cut the wealthiest individual's income by 1, the social welfare is not affected. . 4. Consider the utilitarian social welfare function and the Rawlsian social welfare function the two social welfare functinne described in thic chantar Which one V 2 of 4 O redistributes from rich to poor? Whi at does not do any . 2 5 X gruber 6e lectuppt Show All 19