One of the Conditions Mentioned in Our Formulation of the Ramsey

question 1

Essay

One of the conditions mentioned in our formulation of the Ramsey Rule is that goods be unrelated in consumption.Do you think this is a reasonable assumption? If this condition does not hold,will the Ramsey Rule still work?

---

Definitions:

Nonfamily Households

Living arrangements consisting of individuals who live alone or with non-relatives, differing from family households which include related individuals.

Increased

Marked by growth or a rise in quantity, intensity, or level of particular phenomena or metrics.

Decreased

To become smaller or less in size, amount, intensity, or degree.

Demographic Changes

Alterations in the statistical characteristics of populations over time, including factors like age, race, employment, and marital status.