
The table below reflects the levels of total utility received from income for each of four members of a society.
a.Assume that the society has the following income distribution:
Peter: $3
Paul: $7
Mary: $5
Jane: $3
Is it possible for the government to increase total aggregate utility by redistributing income among members of society
Explain your answer.
b.Assume that the government has $19 to allocate among the four members of society.(Assume that no one has any income to start with.) If the government is interested in distributing income in a way that maximizes aggregate total utility, how should it distribute the $19 of income
c.Does the table above describe a situation characterized by diminishing marginal utility? Explain your answer.
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