Consider the single crossing condition in the model of householdsorting into communities with different levels of public goods. Themodel assumes that higher income households tend to have steeperindifference curves compared to lower income households.
a)Explain the meaning of the slope of the indifference curve. Beprecise.
b)What if –contrary to the model set up from class—lower incomehouseholds’ indifference curves were steeper? Which basic idea fromIntro to Econ would be violated in this case. Explain.
Consider the single crossing condition in the model of household sorting into communities with different levels of publi
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