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Business, 18.06.2020 23:57 pandyjunk3981

The marginal rate of substitution is proportional to income. Assume that income is symmetrically distributed, so that mean income equals the median. Explain why the majority voting equilibrium will be Pareto efficient. i. Now, assume that income is not symmetrically distributed, but rather is skewed towards higher incomes. Will the majority voting equilibrium still be efficient? Will there be an under or over supply of public goods?

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