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Microeconomics

13th Edition
Roger A. Arnold
ISBN: 9781337617406

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Microeconomics

13th Edition
Roger A. Arnold
ISBN: 9781337617406
Textbook Problem

Consider special-interest legislation that will transfer $40 million from group A to group B, a group with 10,000 persons. Is this legislation more likely to pass when group A consists of (a) 10,000 persons or (b) 10 million persons? Explain your answer.

To determine

Effects of money transfer of special interest legislation.

Explanation

Special interest legislation transfers $40 million from group A to group B, where a group consists of 10,000 persons. This legislation is more likely to pass if group A consists of 10 million people and group B consists of 10,000 people...

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