Suppose Rita obtains 10 units of utility from the last dollar of income she receives and David obtains 6 units of utility from his last dollar of income. Assume both David and Rita have the same capacity to derive utility from income with identical marginal-utility-of-income-curves. Those who favor an equal distribution of income would____________.a. advocate redistributing income from David to Rita.b. advocate redistributing income from Rita to David.c. be content with this distribution of income between Rita and David.d. argue that any redistribution of income between them would increase total utility.

Respuesta :

Answer:

a. advocate redistributing income from David to Rita.

Explanation:

Since David is getting a lower utility from his last dollar obtained (6) than Rita (10), the benefit that David gains from this last dollar is less than what Rita would gain if she was the one receiving this dollar. Therefore, those who favor an equal distribution of income would advocate redistributing income from David to Rita, since total utility would increase with this redistribution.