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Microeconomics Final - Part 3 of 3!
SAMPLE
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16. Income Inequality and Poverty / Income Equality and Efficiency / Problem 14
Problem 14

If a government redistributes \$1,000 from a high-income individual to a low-income individual, and the marginal utility of money is 5 for the low-income individual and 2 for the high-income individual, what is the net change in total utility?