A couple is considering moving to Tokyo from New York. Casey's cost of moving is S60,000, and Ashley's cost of moving is $90,000. Their moving costs are high since they must learn a new language. The present value of Casey's lifetime camings is $500,000 in New York, and $550,000 in Tokyo (after converting earnings from yen into dollars). The present value of Ashley's lifetime earnings is $200,000 in New York, and $1,000,000 in Tokyo. Assume they make decisions as a collective housechold where each member's earnings are weighted equally. Will they move as a couple? Is one of them a tied mover or a tied stayer?
A couple is considering moving to Tokyo from New York. Casey's cost of moving is S60,000, and Ashley's cost of moving is $90,000. Their moving costs are high since they must learn a new language. The present value of Casey's lifetime camings is $500,000 in New York, and $550,000 in Tokyo (after converting earnings from yen into dollars). The present value of Ashley's lifetime earnings is $200,000 in New York, and $1,000,000 in Tokyo. Assume they make decisions as a collective housechold where each member's earnings are weighted equally. Will they move as a couple? Is one of them a tied mover or a tied stayer?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![A couple is considering moving to Tokyo from New York. Casey's cost of moving is $60,000,
and Ashley's cost of moving is $90,000. Their moving costs are high since they must learn a new
language. The present value of Casey's lifetime eamings is $500,000 in New York, and
S550,000 in Tokyo (after converting earnings from yen into dollars). The present value of
Ashley's lifetime earnings is $200,000 in New York, and $1,000,000 in Tokyo. Assume they
make decisions as a collective household where each member's earnings are weighted equally.
Will they move as a couple? Is one of them a tied mover or a tied stayer?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd05072a0-e6ac-48d4-bd78-36e9ed9dfe90%2Ff3e84702-7f4d-4b62-b6cf-a882f89fdb13%2Fgtkg00n_processed.png&w=3840&q=75)
Transcribed Image Text:A couple is considering moving to Tokyo from New York. Casey's cost of moving is $60,000,
and Ashley's cost of moving is $90,000. Their moving costs are high since they must learn a new
language. The present value of Casey's lifetime eamings is $500,000 in New York, and
S550,000 in Tokyo (after converting earnings from yen into dollars). The present value of
Ashley's lifetime earnings is $200,000 in New York, and $1,000,000 in Tokyo. Assume they
make decisions as a collective household where each member's earnings are weighted equally.
Will they move as a couple? Is one of them a tied mover or a tied stayer?
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