what-is-the-likely-effect-on-total-utility-if-income-is-redistributed-from-a-wea

Question

What is the likely effect on total utility if income is redistributed from a wealthy individual to a poorer individual?

Accepted Answer

Total utility is likely to increase because the poorer individual gains more utility from each additional dollar.

Answer

Total utility is likely to decrease because the wealthy individual loses more utility.

Answer

Total utility is unaffected by income redistribution.

Answer

Total utility remains unchanged because the total amount of money is constant.