Refer to the diagrams that show identical marginal utility from income curves for Singer and Catalano. If an initial distribution of $15,000 to Singer and $5,000 to Catalano is altered in favor of greater equality, it may be argued that:
A. the combined total utility of the two consumers will decline because Catalano has a greater
capacity to derive utility from income than does Singer.
B. incentives to produce will be weakened and total income will decrease.
C. incentives to produce will be enhanced and total income will increase.
D. the combined total utility of the two consumers will decline because Singer has a greater
capacity to derive utility from income than does Catalano.
B. incentives to produce will be weakened and total income will decrease.
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