Please draw a change that raises the final incomes of the poorest households, but doesn't raise total spending

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Q8. Please draw a change that raises the final incomes of the poorest households, but doesn't raise total spending
Final income
45°
Original Income
Figure 6: Wel
re policy diagram
Towards the right of Figure 6 are two circular red markers with a line between themn that
you can use to draw a line on Figure 6.
You can move the markers with the mouse by clicking on them and dragging.
Alternatively, you can tab to each marker and then use the keyboard arrow keys.
In Figure 6 the solid blue line shows how a tax and benefit system translates original
income into final income.
Position the red markers, one on each vertical axis, on Figure 6 to show the effect of:
A change that raises the final incomes of the poorest households, but doesn't raise
total spending.
( Previous page
Next pa
W
PHILIPS
Transcribed Image Text:Final income 45° Original Income Figure 6: Wel re policy diagram Towards the right of Figure 6 are two circular red markers with a line between themn that you can use to draw a line on Figure 6. You can move the markers with the mouse by clicking on them and dragging. Alternatively, you can tab to each marker and then use the keyboard arrow keys. In Figure 6 the solid blue line shows how a tax and benefit system translates original income into final income. Position the red markers, one on each vertical axis, on Figure 6 to show the effect of: A change that raises the final incomes of the poorest households, but doesn't raise total spending. ( Previous page Next pa W PHILIPS
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