Problem
Demand curves are said to be incomeelasticif the demand for the good increases more than proportionately with income. For instance, with the demand curve
G = /trip
the demand for public goods increases with the square of income. Draw the marginal rate of substitution as a function of income (for a fixed level of expenditure on public goods). Assume Income is symmeuitally distributed. What is the relationship between the average value of the marginal rate of substitution and the marginal rate of substitution of the median individual? What does this imply about the equilibrium supply of public goods under majority voting with uniform taxation?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.